As Varga had requested EU examples of special low VAT rates, they pointed out in their joint letter that Romania extended its 9% VAT on draught beer with no opposition from the European Commission.

They said catering services have a unified VAT rate of 13% in Croatia, 9% in Italy and 10% in Ireland, also including draught beer.

An EU guideline on restaurant services makes it possible to apply a lower VAT on draught beer the Brewers of Europe, a Brussels based association underlined.

The VAT cut might offset the effect of cheep imported beers, that are often imported at dumping prices since Hungary joined the EU in 2004, the letter stressed.

Source: Hungary Around the Clock

This news item is one of many published daily by HATC, a premier subscription news service which distributes English-language info about Hungary via email or fax. For a free trial of HATC visit www.hatc.hu and click on 'Free Trial Subscription’.