VAT : Commission scores a point against London

On 4 June, the EU Court of Justice sided with the European Commission, which had brought an action against the United Kingdom for its application of a reduced VAT rate to the supply and installation of energy-saving materials in all types of housing (Case C-161/14 ). For the judges, this privilege must be reserved to transactions related to social housing, in line with the amended VAT directive (2009/47/EC). Annex 2 of the directive also states that a reduced rate may…