Commission approves Malta’s reduced VAT

The European Commission has proposed to allow 17 member states apply reduced VAT rates on “labour-intensive” services until the end of 2010.
Malta will be allowed to apply a reduced rate of VAT on hairdressing, and other small services of repairing of bicycles, shoes and leather goods, and mending or alteration of clothing and household linen.
Malta has already requested for an extension of its previous reduced VAT rates.
Other member states were allowed further reductions on the renovation of private dwellings, window-cleaning and domestic cares and small repairs.
The reduced rates will apply until 31 December 2010.
Member states that already applied reduced rates are authorised to continue to do so. In this case these are Belgium, France, Italy, Luxemburg, the Netherlands, Portugal, Spain and the United Kingdom.