If this proposal is finally approved, it will be very good news for parents' pockets. The European Commission intends to modify the EU regulations on VAT on diapers and child seats for cars, among other products.
The tax would go from the current 16% to 7%, something that is already applied in other European countries and that seems logical and necessary, can even be the step to look for zero VAT in diapers.
The proposal is the result of a complaint from the Congress of Spain, which in 2005 unanimously approved a resolution urging the Government to promote a VAT reduction in this type of products in the EU. The Commission intends that the standard be approved in mid-2009 to enter into force in 2011.
The rule could force to raise the tax applicable to wine and the rest of alcoholic beverages in Spain, which curiously, these yes, now are taxed with 7%. First need products?
Also, next to diapers and car seats, 7% is proposed for compresses and contraceptive methods, as well as for devices intended for the use of disabled people. The diapers, compresses and contraceptive methods they are covered in the new standard thanks to a precision in the definition of pharmaceutical products, which includes "the products used for contraception and absorbent hygienic protection products".
However, it is not so clear that this proposal will become a fact: the negotiation will be complicated because unanimity is required and there are countries like Germany or Denmark that are reluctant to extend the reduced rates. Hopefully it will finally be achieved.
