February 22, 2013
Brussels to challenge the UK in court on Green Deal VAT
The European Commission has confirmed intends to take the UK Government to court to force the Treasury to impose the full rate of VAT on energy-saving goods which are a key element of the flagship Green Deal energy efficiency scheme. The Green Deal is designed not only to improve the UK’s environmental performance but also boost the economy. The commission issued a statement yesterday confirming it would refer the UK to the EU Court of Justice over the practice of imposing reduced VAT rates on green goods which it claims break EU law and won’t deliver the aims of the government’s flagship Green Deal energy efficiency scheme.