EU Ministers Finalize Reduced VAT Update, Calais Tax-Free Zone

European Union finance ministers meeting in Luxembourg Tuesday greenlighted a value-added tax update that will see reduced VAT rates for fossil fuels phased out by 2030 while giving the bloc’s countries more freedom to apply reduced rates on other goods and services.

Separately, ministers also agreed Tuesday to a technical tweak to EU excise duty rules which will allow tax-free shopping at the French end of channel tunnel to the U.K.

• Currently, EU countries must apply VAT of at least 15% but can apply two reduced rates of no lower than 5% on products and services listed in ...