VAT: Commission refers Ireland to EU Court over reduced VAT rate for horses and greyhounds

The European Commission has today decided to refer Ireland to the EU’s Court of Justice over its application of a 4.8% reduced VAT rate for supplies of horses and greyhounds. This reduced rate is not in line with the provisions of the VAT Directive (2006/112/EC), and could cause a distortion of competition within the EU. The Commission had sent a reasoned opinion – the second stage of an infringement procedure – to Ireland in June 2010 (IP/10/796). As it failed to comply with EU law, the Commission has today decided to take Ireland to the Court.

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