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Berlin & Paris nearing to seal the VAT deal

21 Jan '06
1 min read

Germany has signalled willingness to compromise in a conflict with France over reduced rates for VAT, with French president Jacques Chirac still pressing for lower taxes on restaurant meals.

The disagreement relates to an EU-wide scheme where member states can apply VAT rates as low as 5 percent instead of their national standard rates, on a list of "labour intensive" services.

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EU Observer

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