VATcodexEU VAT case law · Court of Justice and General Court

Article 98 Directive 2006/112/EC

Reduced rates

Title VIII · Rates › Chapter 2 · Structure and level of rates › Section 2 · Reduced rates

Open in the compendium48 cases ↓

Text of Article 98

1.Member States may apply a maximum of two reduced rates.

The reduced rates shall be fixed as a percentage of the taxable amount, which shall not be less than 5 % and shall apply only to the supplies of goods and services listed in Annex III.

Member States may apply the reduced rates to supplies of goods or services covered in a maximum of 24 points in Annex III.

2.Member States may, in addition to the two reduced rates referred to in paragraph 1 of this Article, apply a reduced rate lower than the minimum of 5 % and an exemption with deductibility of the VAT paid at the preceding stage to supplies of goods or services covered in a maximum of seven points in Annex III.

The reduced rate lower than the minimum of 5 % and the exemption with deductibility of the VAT paid at the preceding stage may only be applied to supplies of goods or services covered in the following points of Annex III:

(a)points (1) to (6) and (10c);

(b)any other point of Annex III falling under the options provided for in Article 105a(1).

For the purposes of point (b) of the second subparagraph of this paragraph, the transactions regarding housing referred to in Article 105a(1), second subparagraph, shall be regarded as falling under Annex III, point (10).

Member States applying, on 1 January 2021, reduced rates lower than the minimum of 5 % or granting exemptions with deductibility of the VAT paid at the preceding stage to supplies of goods or services covered in more than seven points in Annex III, shall limit the application of those reduced rates or the granting of those exemptions to comply with the first subparagraph of this paragraph by 1 January 2032 or by the adoption of the definitive arrangements referred to in Article 402, whichever is the earlier. Member States shall be free to determine to which supplies of goods or services they will continue to apply those reduced rates or grant those exemptions.

3.The reduced rates and the exemptions referred to in paragraphs 1 and 2 of this Article shall not apply to electronically supplied services, except to those listed in Annex III, points (6), (7), (8) and (13).

4.When applying the reduced rates and exemptions provided for in this Directive, Member States may use the Combined Nomenclature or the statistical classification of products by activity, or both, to establish the precise coverage of the category concerned.

Consolidated version on EUR-Lex (CELEX 02006L0112-20250414). © European Union. Only the Official Journal is authentic.

Case law on Article 98: 48 cases

Judgments, orders and Advocate General opinions of the Court of Justice and the General Court that cite Article 98 of Directive 2006/112/EC, most recent first.

  1. C-409/24 J-GmbH (Selective application of the reduced rate of VAT) Judgment · 5 March 2026 · Germany · cites Article 98(1), (2)
  2. C-375/24 Keesing Deutschland Judgment · 1 August 2025 · cites Article 98(3)
  3. C-794/23 Finanzamt Österreich (VAT invoiced in error to final consumers II) Opinion · 19 December 2024 · Austria · cites Article 98(1)
  4. C-741/22 Casino de Spa and Others Opinion · 25 April 2024 · Belgium · cites Article 98(3)
  5. C-73/23 Chaudfontaine Loisirs Opinion · 25 April 2024 · cites Article 98(3)
  6. C-576/23 Elite Games Order · 14 March 2024 · Romania
  7. C-87/23 Latvijas Informācijas un komunikācijas tehnoloģijas asociācija Opinion · 7 March 2024 · Latvia · cites Article 98(2)
  8. C-733/22 Valentina Heights Judgment · 8 February 2024 · Bulgaria · cites Article 98(1), (2)
  9. C-433/22 HPA - Construções Judgment · 11 January 2024 · Portugal · cites Article 98(1), (2)
  10. C-146/22 Dyrektor Krajowej Informacji Skarbowej (VAT on hot milk-based drinks) Judgment · 5 October 2023 · Poland · cites Article 98(1), (2), (3)
  11. C-330/21 The Escape Center Judgment · 22 September 2022 · Belgium · cites Article 98(1), (2)
  12. C-378/21 Finanzamt Österreich (VAT invoiced incorrectly to final consumers) Opinion · 8 September 2022 · Austria · cites Article 98(1)
  13. C-218/21 Autoridade Tributária e Aduaneira Judgment · 5 May 2022 · Portugal · cites Article 98(1), (2)
  14. C-515/20 Finanzamt A Judgment · 3 February 2022 · Germany · cites Article 98(1), (2), (3)
  15. C-406/20 Phantasialand Judgment · 9 September 2021 · cites Article 98(1), (2)
  16. C-703/19 Dyrektor Izby Administracji Skarbowej w Katowicach Judgment · 22 April 2021 · Poland · cites Article 98(2), (3)
  17. C-331/19 Staatssecretaris van Financiën (Reduced rate of VAT for aphrodisiacs) Judgment · 1 October 2020 · Netherlands · cites Article 98(1), (2)
  18. C-231/19 Blackrock Investment Management (UK) Opinion · 11 March 2020 · United Kingdom · cites Article 98(1)
  19. C-715/18 Segler-Vereinigung Cuxhaven Judgment · 19 December 2019 · Germany · cites Article 98(1), (2)
  20. C-145/18 Regards Photographiques Judgment · 5 September 2019 · France · cites Article 98(1), (2)
  21. C-597/17 Belgisch Syndicaat van Chiropraxie and Others Judgment · 27 June 2019 · Belgium
  22. C-552/17 Alpenchalets Resorts Judgment · 19 December 2018 · Germany · cites Article 98(1), (2)
  23. C-499/16 AZ Judgment · 9 November 2017 · Poland · cites Article 98(3)
  24. C-573/15 Oxycure Belgium Judgment · 9 March 2017 · Belgium · cites Article 98(1), (2)
  25. C-390/15 RPO Judgment · 7 March 2017 · Poland · cites Article 98(1), (2)
  26. C-432/15 Baštová Judgment · 10 November 2016 · Czechia · cites Article 98(1), (2)
  27. C-543/14 Ordre des barreaux francophones et germanophone and Others Judgment · 28 July 2016 · Belgium · cites Article 98(1), (2)
  28. C-516/14 Barlis 06 - Investimentos Imobiliários e Turísticos Opinion · 18 February 2016 · Portugal
  29. C-550/14 Envirotec Denmark Opinion · 17 December 2015 · Denmark · cites Article 98(3)
  30. C-161/14 Commission v United Kingdom Judgment · 4 June 2015 · United Kingdom · cites Article 98(1), (2)
  31. C-678/13 Commission v Poland Judgment · 4 June 2015 · Poland
  32. C-479/13 Commission v France Judgment · 5 March 2015 · cites Article 98(1), (2)
  33. C-502/13 Commission v Luxembourg Judgment · 5 March 2015 · cites Article 98(1), (2)
  34. C-639/13 Commission v Poland Judgment · 18 December 2014 · Poland
  35. C-219/13 K Judgment · 11 September 2014 · Finland · cites Article 98(1), (2)
  36. C-454/12 Pro Med Logistik and Pongratz Judgment · 27 February 2014 · Germany · cites Article 98(1), (2)
  37. C-108/11 Commission v Ireland Judgment · 14 March 2013 · Ireland
  38. C-360/11 Commission v Spain Judgment · 17 January 2013 · Spain
  39. C-480/10 Commission v Sweden Opinion · 27 November 2012 · Sweden · cites Article 98(1), (2)
  40. C-557/11 Kozak Judgment · 25 October 2012 · Poland · cites Article 98(2)
  41. C-441/09 Commission v Austria Judgment · 12 May 2011 · Austria
  42. C-453/09 Commission v Germany Judgment · 12 May 2011 · Germany
  43. C-41/09 Commission v Netherlands Judgment · 3 March 2011 · Netherlands
  44. C-49/09 Commission v Poland Judgment · 28 October 2010 · Poland · cites Article 98(1), (2)
  45. C-97/09 Schmelz Judgment · 26 October 2010 · Austria
  46. C-156/09 Verigen Transplantation Service International Opinion · 29 July 2010 · Germany · cites Article 98(1), (2)
  47. C-492/08 Commission v France Judgment · 17 June 2010 · France · cites Article 98(1), (2)
  48. C-94/09 Commission v France Judgment · 6 May 2010 · France · cites Article 98(1), (2)

VAT Committee guidelines on Article 98: 3

Not binding. Positions agreed in the VAT Committee set up under Article 398 of Directive 2006/112/EC and published by the Commission.