8th Apr 2016 13:59
LONDON (Alliance News) - Flowgroup PLC on Friday welcomed a Value Added Tax action plan issued by the European Commission, saying it believes both options presented in the plan would see a continued reduced rate of VAT for sales and installations of its Flow boilers.
The EU Commission's plan presents two options, according to Flowgroup. The first is to amend the existing VAT directive, whilst maintaining its current list of goods and services eligible for reduced rates, and to regularly review this list. Flowgroup said its Flow boiler would be expected to qualify for the reduced rate as an energy efficiency device.
The second option is to abolish the list of goods and services that can benefit from reduced rates of VAT and give member states direct control over this decision. In this scenario, the UK government has previously confirmed that energy efficiency devices, such as the Flow boiler, will continue to benefit from the UK's reduced 5% VAT rate.
Flowgroup said any legislative changes arising the VAT action plan are not expected to be implemented until 2017.
Shares in Flowgroup were up 6.5% at 23.30 pence Friday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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