EuroACE, the European Alliance of Companies for Energy Efficiency in Buildings, strongly favours reduced VAT rates for the renovation of existing buildings and calls on the European Commission to maintain this measure in its current review of EU VAT legislation.
In line with its Climate Objectives and Growth Agenda, the EU has placed requirements on buildings through the Energy Performance of Buildings Directive and through the recently adopted Energy Efficiency Directive. The use of reduced VAT rates facilitates the application of these Directives by stimulating labour intensive renovation activities across the EU.
Increasing renovation rates from the current average of about 1.2% to about 3%, would not only help the EU to achieve its climate objective goals but would also provide a wide-range of multiple benefits in terms of job creation, lower energy bills and reduced fuel poverty.