On 7 December 2021, Member States meeting in the Economic and Financial Affairs Council, also known as the ECOFIN Council, reached agreement on a proposal to amend the VAT Directive with regard to reduced rates. In line with the strategic objectives of the European Union, they mainly decided on the introduction of reduced rates for the green economy and digitalisation. On the other hand, Member States will now only be authorized to apply reduced VAT rates to a limited number of pre-selected goods and services.
Source KPMG
