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Value Added Tax

Volume 888: debated on Monday 10 March 1975

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asked the Chancellor of the Exchequer if he will publish in the Official Report a table showing the comparative applications of VAT in each of the members of the EEC, including its applications to food, fuel and travel, the rates in each member State, the yield and transfer to "own resources", in units of account and sterling equivalent, and the yield per head of population.

I regret that it is not practicable to give comprehensive information in tabular form on the comparative coverages of VAT in member States of the EEC. A table is given below showing the standard and the other rates of tax ruling in member States at the end of 1974, with outline information about the rates and coverage in the three particular fields mentioned by my hon. Friend. The figures of yield for all countries except the United Kingdom are taken from the latest information published by the commission which relates to 1972 unless otherwise stated; conversion to sterling equivalent has been calculated in relation to EEC units of account. The yield per head of population also makes use of population figures for 1972, unless otherwise stated. VAT contributions will be made towards the Community budget only when there is agreement on a uniform VAT assessment basis.

YieldYield per

Standard Rate (a) Per cent.

Other Rates (a) Per cent.

Food

Coverage Fuel (d)

Travel

Millions of units of account

£m.

Capita Units of account

Belgium18256 per cent. (14 per cent, soft drinks)6 per cent, gas, petrol 14 per cent, coal, fuel oil, electricity6 per cent.2,112880217
14
6
0 (b)
Denmark150 (b)15 per cent.15 per cent.Exempt1,570 (g)654 (g)315
France2033·57 per cent.17·6 per cent.17·6 per cent.16,2946,789315
17·6(17·6 per cent, for soft drinks, margarine and confectionery)
7
0 (b)
Germany115·55·5 per cent.(11 per cent, for soft drinks and confectionery)11 per cent.11 per cent. (5·5 percent, if journey less than 50 km)13,373 (j)5,572 (j)217
Ireland19·536·750 per cent.6·75 per cent.Exempt77(f)32(f)26
11·11(6·75 per cent, on soft drinks and confectionery)
6·75
1
0
Italy12301 per cent, (c)6 per cent, gas, electricity12 per cent, petrol, derv, coal6 per cent, (urban transport between towns less than 50 km apart is exempt)(e)(e)(e)
183 per cent, (c)
66 per cent.
3(c)
1(c)
0 (b)

Standard Rate (a) Per cent.

Other Rates (a) Per cent.

Food

Coverage Fuel (d)

Travel

Yield Millions of units of account

£m.

Yield per Capita Units of account

Luxembourg1055 per cent.5 per cent.5 per cent.5423157
2(c)(2 per cent, (c) on certainmeat, milk and bakery products; 10 per cent. on margarine and confectionery)
Netherlands164

4 per cent.

4 per cent, coal, gas. fuel oils

4 per cent.

2,7901,162209
0(b)(16 per cent, soft drinks and confectionery)
16 per cent, petrol, electricity
United Kingdom825

0 per cent.

0 per cent, coal, gas. electricity

0 per cent.

3,530 (h)1,471 (h)63 (k)
0(8 per cent, on soft drinks and confectionery)8 per cent, derv 25 per cent. petrol(8 per cent, for transport in vehicles with less than 12 seats)

Notes:

(a) As at December 1974.
(b) The zero rates in France, Italy, Netherlands, Belgium and Denmark are of very limited application.
(c) Temporary rates.
(d) Includes all power sources.
(e) VAT was not in operation in Italy in 1972. No later figures are available.
(f) November 1972-April 1973.
(g) 1972–73.
(h) 1973–74 (net of rebate of tax on goods subject to purchase tax and revenue duties).
(j) Includes import turnover tax.
(k) Based on population estimate for mid 1973.

asked the Chancellor of the Exchequer when the descriptive booklets on the new VAT A to J Schemes for retailers will be available; what is the nearest office to Coalville, Leicestershire, from which they can be obtained; and if he will postpone the implementation of the new schemes until retailers have had the opportunity fully to read and understand them and to make the necessary preparations.

These booklets have been available from a central distribution point since mid-February. All retailers were advised at that time how to get them, and provided with a pre-paid, addressed card for ordering them. The address is HM Customs and Excise, c/o 565–577 Kingston Road, Raynes Park, London SW20 9BR. There is a small stock of the booklets at the Customs and Excise VAT office at Penine House, 31–33 Millstone Lane, Leicester, LE1 5JP, but it has always been intended that the main distribution should be from a central point, which is the most economical method.My right hon. Friend does not propose to postpone the introduction of the new schemes. 1st April was chosen as the most convenient date because it is the start of a new VAT year. The new schemes arc mainly revisions of the existing schemes and involve no major changes in principle.