The EU Council has reached agreement on use of reduced VAT rates in certain sectors. The agreement means that all member states, by amending the VAT directive 2006/112/EC, should have the option to apply reduced VAT rates on a permanent basis to a number of supplies, including restaurant services and hairdressing.
Other supplies include:
- Minor repairing of bicycles, shoes and leather goods, clothing and household linen (including mending and alteration);
- Window-cleaning and cleaning in private households;
- Domestic care services such as home help and care of young, elderly, sick or disabled;
- Renovation and repairing of private dwellings, excluding materials which account for a significant part of the value of the service supplied.
Further information is available here