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Tuesday's VAT decision is expected to reduce restaurant dining prices in France (Photo: Wikipedia)

EU reaches agreement on reduced VAT rates

EU finance ministers reached a political agreement on Tuesday (10 March), enabling member state governments to reduce Value Added Tax in a number of labour intensive service sectors.

Under the current EU directive controlling the sales tax, member states are not allowed to reduce VAT below 15 percent. Following Monday's decision, governments will be able to reduce the tax to as low as 5.5 percent in a number of areas, including the restaurant sector.

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Tuesday's VAT decision is expected to reduce restaurant dining prices in France (Photo: Wikipedia)

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