VAT on nappies puts damper on EU Commission

TO VAT or not to VAT nappies is exercising the minds of the European Commission.

Babies’ nappies are VAT free to shoppers in Ireland and Britain and in five other EU countries. But the European Tax Commissioner Laszlo Kovacs has told the five – which includes his native Hungary — they have to charge a minimum VAT rate of 15% on the diapers.

The Irish and British can continue to buy them VAT-free because that was the deal both countries did before joining the Union over 30 years ago.