Answer given by Mr Moscovici on behalf of the Commission
23.8.2016
VAT is a general tax on consumption and as such has to be levied on all transactions listed in Article 2 of the VAT Directive[1]. As a general principle, these transactions are taxed at a standard rate. The directive makes no reference to either ‘luxury’ or ‘essential’ products. It provides for a series of exemptions and reliefs, notably the possibility for Member States to apply reduced rates for goods listed in Annex III; sanitary protection products in particular may benefit from reduced-rate treatment, alongside for example pharmaceutical products.
As concerns Commission plans on VAT rates, the Commission has made them known in the action plan on VAT, published on 7 April 2016[2].