New European VAT rules for equines

The Economic and Financial Affairs Council (ECOFIN) have formally adopted amendments to the VAT directive.

Previously there have been considerable issues and discrepencies in the VAT rates and EU attempts to harmonise rates across the Union had forced some Member States to raise VAT rates far beyond other agricultural activities, or suffer penalities.

Through a concerted effort across all Member States, with strong commitment from the EEF EU Committee to keep the issue high on the agenda, the new directive will allow equine activities to be set by each national government which should see, in most countries, a reduction in VAT applied.

 “This has been a key action of our EU working group for many years now and a crucial issue for many of our member nations, particularly France. We are extremely happy that our efforts have been rewarded and the reform will allow fairer VAT treatment for equines. With this new ruling, it is important that national federations or, more broadly the equine industry, work with their own governments to implement this new possibility, allowing lower VAT rates to our industry”  Said Catherine Bonnichon - de Rancourt, director of European and Institutional Affairs at the French Equestrian Federation and member of the EEF EU Working Group.

The new directive is available to view here.