13 Dec. New VAT requirements from 2022
Brussels, 13.12.21. Manuela Ripa, MEP of the Ecological Democratic Party (ÖDP), has called for a reduction in VAT on climate and health-friendly goods. The background to this is the agreement of the EU member states to make the structure of VAT more flexible from 2022.
"I expressly welcome the idea of reducing VAT for certain products. The aim must be to make climate-friendly and health-promoting goods more affordable, such as regional fruit and vegetables," emphasizes the ÖDP politician. The new flexibilization of VAT makes it possible to promote such products, but its concrete form is still unclear.
Goods such as medicines or food that cover basic needs could be completely exempt from VAT in future. The main aim is to promote the healthcare sector, digitalization and the transition to a more environmentally friendly economy.
Ripa: "VAT reduction for climate-friendly and health-promoting products is an overdue step"
MEP Ripa advocates using these concessions for particularly environmentally friendly and sustainable goods, but would also like to put the tax incentives for climate-damaging products to the test: "In return, we must also talk about withdrawing the reductions on goods that are harmful to the climate and health. This could remedy abuses such as the fact that plant-based alternatives to milk still have the full VAT rate but meat has a reduced rate. Existing VAT exemptions for goods that harm the EU's climate goals must be clearly suspended until 2030."
When it comes to health prevention, the MEP from the Ecological Democratic Party recently spoke out in favor of a tax reduction for healthy food in the Special Committee on Cancer. One of the demands in the final report is directed at the Member States to use price policies such as VAT differentiation and marketing controls specifically for health prevention: "Healthy foods and drinks with a low content of saturated fats, trans fats, salt and sugar must be affordable and easily accessible. At the same time, unhealthy foods should be subject to the same ban on advertising as alcohol and tobacco. One of the issues close to my heart is to promote the prevention of cancer. It has been proven that fruit and vegetables can have a preventative effect in the diet, and the reduction in VAT makes a lot of sense here, especially as the new agreement allows a reduction to 0%," summarizes Ripa.
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