SMEs hail VAT reduction measures[fr][de] 

The Economic and Financial Affairs Council (Ecofin ) agreed yesterday (March 10) to reduce VAT in labour-intensive industries, with a particular focus on locally-provided services, including bicycle and shoe repairs, window cleaning, hair salons and nursing home services. 

Restaurants and books can also benefit from the measures proposed by the bloc's 27 economics ministers, as can toll bridges in Lisbon and liquefied petroleum gas (LPG) cylinders in Cyprus. 

UEAPME , the European craft and SME employers' organisation, said the agreement brings an end to years of legal uncertainty. 

The group said the new rules will create a level playing field across Europe and give all member states the possibility to opt in at any time, and will help create incentives for employment for the SMEs. 

"SMEs will be allowed to charge considerably less for these services, making them more affordable and attractive to the public without endangering cross-border competition. This is a boon for small businesses, all the more so in the present economic downturn," said Andrea Benassi, secretary-general of UEAPME. 

He said the reduced VAT rates would be "an excellent addition" to national economic recovery plans currently under discussion.