As already expressed in January in its answer to the European Commission’s consultation “Review of existing legislation on VAT reduced rates”, CECOP considers essential to preserve the possibility given for Members States to apply reduced VAT rates, as is foreseen by the Directive 2006/112/EC of 28 November 2006, Annex III. The European Commission recognizes in the latter that “supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work” are taxed where they are delivered and thus do not cause any distortion within the Single Market. A 4% VAT rate applied to thousands of Italian social cooperatives providing health, social and educational services to citizens including the most vulnerable ones, has contributed to the development over the last few years of numerous social cooperatives with sound economic performance and a recognised dimension of sustainable social inclusion. [The CECOP answer to the European Commission consultation “Review of existing legislation on VAT reduced rates”->] Download the letter here: