Ireland and Britain will not be able to keep zero rates of VAT on children's clothes and shoes, the European Commission said today in proposals on VAT rates throughout the bloc.
Ireland has said it will oppose the new VAT rules, for which unanimity is required, if the zero rate on children's clothes and shoes was scrapped.
France will be able to apply a reduced VAT rate to restaurants as promised by President Jacques Chirac in his electoral campaign, the European Commission added.