Francisco Guerreiro questions Commission on reduced VAT rate for veterinary care

Lisbon, 23 June 2020 - MEP Francisco Guerreiro (Greens/EFA) supports the question addressed to the European Commission (EC) on the possibility for Member States to apply a reduced VAT rate in relation to veterinary care and medicines for dogs and cats.

On the initiative of MEP Petras Austrevicius, Francisco Guerreiro co-signed this letter asking whether the EC can confirm that current EU legislation allows Member States to decide to apply a reduced VAT rate on veterinary medicines, care and surgeries. 

They also ask if it is true that the current regime violates Article 113 of the TFEU, in case the Commission does not accept that a reduced VAT rate can be applied.  

The Commission’s Staff Working Document (1) concludes that ‘the constraints to Member States’ flexibility in setting VAT rates are no longer consistent with Article 113 TFEU on which the VAT Directive is based’. Hence, Member States seem to be legally allowed to apply a reduced VAT rate.

Read the full question below.

A reduced VAT rate for veterinary care and medication of cats and dogs

An option for Member States to apply a reduced VAT for pet medicines and veterinary care could effectively contribute to a better care of cats and dogs and also allow to carry out more sterilisations of owned and stray animals.

The European Commission’s Staff Working Document[i] concludes that ‘the constraints to Member States’ flexibility in setting VAT rates are no longer consistent with Article 113 TFEU on which the VAT Directive is based'.

Hence, Member States seem to be legally allowed to apply a reduced VAT rate.

Can the Commission confirm that the current EU legislation allows Member States to decide on applying a reduced VAT rate regarding veterinary medication, care and surgeries?

If the Commission does not accept that a reduced VAT rate can be applied, does it confirm that the current regime violates article 113 TFEU?

[i] Commission Staff Working Document, Impact Assessment Accompanying the document Proposal for a Council Directive amending Directive 2006/112/EC as regards rates of value added tax, (SWD(2018) 7 final – SWD (2018) 8 final) 18 January 2018 COM (2018) 7 final, 15.

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