Answer given by Mr Moscovici on behalf of the Commission

15.2.2016

The Commission refers the Honourable Members to the answers given to questions P-9799/15, P-10188/15, E-10486/15 and E-11736/15.

The CJEU[1] has indeed confirmed the Commission's opinion that under the current VAT rules the United Kingdom's rules were not adopted exclusively or principally for social interest reasons and that the energy-saving materials covered by the UK legislation were extended to materials that accounted for a significant part of the value of the service supplied. The Commission is confident that the United Kingdom will take appropriate action.

The objective of supporting energy saving in itself is supported by the Commission and apart from VAT subsidies, there are other ways of promoting the installation of energy-saving materials while remaining in line with EC law, for example through direct subsidies.

The Commission will present an Action Plan on VAT in March 2016, which will include an analysis on the way forward on VAT rates.

• [1] Court of Justice of the European Union.