EU Clashes with Spain over ‘Illegal’ Fuel VAT Cut
8 Articles
8 Articles
EU clashes with Spain over ‘Illegal’ fuel VAT cut
Drivers across Spain have been enjoying slightly lower pump prices in recent weeks, thanks to the government’s emergency cutting of VAT on fuels from 21 per cent down to 10 per cent. But Ursula von der Leyen and the European Commission are none too pleased and might be readying a backlash against Madrid for incompatibility with EU rules. Officials in Brussels sent a letter to Madrid at the end… Source
The European Union has drawn attention to several countries, including Spain, for the fuel aid they have provided.
Spain and Poland may have violated EU rules by reducing value-added tax (VAT) on fuel, the European Commission warned today. Reducing VAT on fossil fuels is not allowed, but reducing excise duties could be one solution, they said in Brussels, according to the French news agency AFP.
Spain and Poland could run afoul of EU rules when they cut VAT on fuel in the wake of the Iran war, the European Commission warns.
The European Commission announced that it had sent a letter to Poland and Spain informing their authorities that the EU VAT directive does not include a provision for reducing this tax on fossil fuels.
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