{
  "url": "https://openlegislation.uk/eu-directive-2016-856/introduction",
  "json_url": "https://openlegislation.uk/eu-directive-2016-856/introduction.json",
  "legislation": "eudr/2016/856",
  "legislation_title": "Council Directive (EU) 2016/856 of 25 May 2016 amending Directive 2006/112/EC on the common system of value added tax, as regards the duration of the obligation to respect a minimum standard rate",
  "legislation_url": "https://openlegislation.uk/eu-directive-2016-856",
  "path": "introduction",
  "kind": "introduction",
  "number": null,
  "heading": "Introductory text",
  "text": "Council Directive (EU) 2016/856\nof 25 May 2016\namending Directive 2006/112/EC on the common system of value added tax, as regards the duration of the obligation to respect a minimum standard rate\nTHE COUNCIL OF THE EUROPEAN UNION,\nHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 113 thereof,\nHaving regard to the proposal from the European Commission,\nAfter transmission of the draft legislative act to the national parliaments,\nHaving regard to the opinion of the European Parliament,\nHaving regard to the opinion of the European Economic and Social Committee,\nActing in accordance with a special legislative procedure,\nWhereas:\n(1)\nArticle 97 of Council Directive 2006/112/EC provides that from 1 January 2011 until 31 December 2015 the standard rate of value added tax (VAT) may not be less than 15 %.\n(2)\nThe standard VAT rate currently in force in the Member States, combined with the mechanism of the transitional system has ensured that the VAT system has functioned to an acceptable degree. With new rules on the place of supply of services which favour taxation at the place of consumption, the possibilities for exploiting differences in VAT rates through relocation have been limited further and potential distortions of competition have been reduced.\n(3)\nTo prevent excessive divergence in the standard VAT rates applied by Member States from leading to structural imbalances in the Union and distortions of competition in some sectors of activity, it is common practice in the field of indirect taxes to set minimum rates. It is still prudent to do so for VAT.\n(4)\nIn view of the ongoing discussion on the features of the definitive VAT regime for intra-Union trade, it would be premature to set a permanent standard VAT rate or to consider changing the minimum VAT rate.\n(5)\nIt is therefore appropriate to maintain the current minimum standard rate at 15 % for a period long enough to ensure legal certainty, while allowing further review.\n(6)\nThe maintenance of the current minimum standard rate does not preclude a further revision of VAT legislation before 31 December 2017 to address the introduction of a definitive VAT regime for intra-Union trade.\n(7)\nIn order to ensure the uninterrupted application of the minimum standard rate established by Directive 2006/112/EC, it is appropriate that this Directive apply from 1 January 2016.\n(8)\nDirective 2006/112/EC should therefore be amended accordingly,\nHAS ADOPTED THIS DIRECTIVE:",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "footnote",
      "label": "f1",
      "text": "Opinion of 12 April 2016 (not yet published in the Official Journal)."
    },
    {
      "type": "footnote",
      "label": "f2",
      "text": "Opinion of 17 February 2016 (OJ C 133, 14.4.2016, p. 23)."
    },
    {
      "type": "footnote",
      "label": "f3",
      "text": "Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax (OJ L 347, 11.12.2006, p. 1)."
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudr/2016/856/introduction",
    "retrieved_at": "2026-11-01T15:21:34.735755+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}