What changed, Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax

− Portugal may, in the case of transactions carried out in the autonomous regions of the Azores and Madeira and of direct importation into those regions, apply rates lower than those applying on the mainland.
− ## CHAPTER 3 / Temporary provisions for particular labour-intensive services
− ### Article 106
− The Council may, acting unanimously on a proposal from the Commission, allow Member States to apply until 31 December 2010 at the latest the reduced rates provided for in Article 98 to services listed in Annex IV.
− The reduced rates may be applied to services from no more than two of the categories set out in Annex IV.
− In exceptional cases a Member State may be allowed to apply the reduced rates to services from three of those categories.
− ### Article 107
− The services referred to in Article 106 must meet the following conditions:
− (a) they must be labour-intensive;
− (b) they must largely be provided direct to final consumers;
− (c) they must be mainly local and not likely to cause distortion of competition.
− There must also be a close link between the decrease in prices resulting from the rate reduction and the foreseeable increase in demand and employment. Application of a reduced rate must not prejudice the smooth functioning of the internal market.
− ### Article 108
− Any Member State wishing to apply for the first time after 31 December 2005 a reduced rate to one or more of the services referred to in Article 106 pursuant to this Article shall inform the Commission accordingly no later than 31 March 2006. It shall communicate to it before that date all relevant …
− (a) scope of the measure and detailed description of the services concerned;
− (b) particulars showing that the conditions laid down in Article 107 have been met;
− (c) particulars showing the budgetary cost of the measure envisaged.
− The Member States referred to in the first subparagraph may also apply such a rate to restaurant services, children's clothing, children's footwear and housing.
− Member States which, at 1 January 1991, were applying a reduced rate to restaurant services, children's clothing, children's footwear or housing may continue to apply such a rate to the supply of those goods or services.
− ### Article 116
− Portugal may apply one of the two reduced rates provided for in Article 98 to restaurant services, provided that the rate is not lower than 12 %.
− 1. For the purposes of applying Article 115, Austria may continue to apply a reduced rate to restaurant services.
− 2. Cyprus may continue to apply a reduced rate of not less than 5 % to the supply of restaurant services, ►M2 until 31 December 2010** ◄ ** or until the introduction of definitive arrangements, as referred to in Article 402, whichever is the earlier.
− 2. Poland may, until 31 December 2010 or until the introduction of definitive arrangements, as referred to in Article 402, whichever is the earlier, continue to apply a reduced rate of not less than 7 % to the supply of restaurant services.
− 1. Slovenia may, ►M2 until 31 December 2010** ◄ ** or until the introduction of definitive arrangements as referred to in Article 402, whichever is the earlier, continue to apply a reduced rate of not less than 8,5 % to the preparation of meals.
− (6) supply, including on loan by libraries, of books (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or pre…
− ### ANNEX IV
− ### LIST OF THE SERVICES REFERRED TO IN ARTICLE 106
− (1) Minor repairing of:
− (a) bicycles;
+ ### Article 104a
+ Cyprus may apply one of the two reduced rates provided for in Article 98 to the supply of liquid petroleum gas (LPG) in cylinders.
+ 1. Portugal may apply one of the two reduced rates provided for in Article 98 to the tolls on bridges in the Lisbon area.
+ 2. Portugal may, in the case of transactions carried out in the autonomous regions of the Azores and Madeira and of direct importation into those regions, apply rates lower than those applying on the mainland.
+ The Member States referred to in the first subparagraph may also apply such a rate to children’s clothing and children’s footwear and housing.
+ Member States which, at 1 January 1991, were applying a reduced rate to children’s clothing, children’s footwear or housing may continue to apply such a rate to the supply of those goods or services.
+ (6) supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children’s picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, …
+ (10a) renovation and repairing of private dwellings, excluding materials which account for a significant part of the value of the service supplied;
+ (10b) window-cleaning and cleaning in private households;
+ (12a) restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages;
+ (19) minor repairing of bicycles, shoes and leather goods, clothing and household linen (including mending and alteration);
+ (20) domestic care services such as home help and care of young, elderly, sick or disabled;
+ (21) hairdressing.