Reduced VAT for environmentally friendly products

The study examines the potential use of reduced VAT on environmentally friendly goods and the current application of reduced VAT on energy consumption by households. The analysis is carried out in the context of EU policy approach to climate change and energy security, including interaction with other policy instruments at the EU and national levels. The core of this study focuses on what role - if any - should VAT rate policy play in underpinning these objectives.