Valdis Dombrovskis, Executive Vice-President of The European Commission states that under EU law, Member States can be flexible with VAT rates and indeed this can extend to beer served in hospitality establishments.
Mr Dombrovskis was responding to a letter from a cross-party coalition of MEPs headed by the EP Beer Club President, Ivan Stefanec, which voiced concerns of the brewing and hospitality sectors. Having been hit hard by the COVID-19 crisis, the support measures that have been in place through the EU’s recovery fund and the initiatives by individual Member States, will not be enough to help people and businesses unless they are continued for the duration of uncertainty due to the pandemic.
The Commission recognises that VAT rates is one measure which can provide relief for brewers and for catering venues, and together with reduced excise duties and other relief measures to support jobs, believes that they go some way to address the extreme challenges of this period.