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UK to face court action over Green Deal VAT cut

green dealThe European Commission is to pursue the UK government through the courts over its decision to offer cut-price VAT on energy saving products.

The EU made the announcement this morning after declaring that charging a lower VAT rate of five percent on green goods would not help deliver the aims of the Green Deal. 

The UK has previously defended its stance by arguing that applying the reduced rate will be vital if Green Deal is to be financially attractive to homeowners and not fail, despite falling foul of European VAT legislation.

The government has yet to respond to the commission’s latest announcement.

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