The 'Tampon Tax': a UK and EU standstill

The need to categorise products with regard to their VAT status has led to various high profile and at times highly unusual situations. In recent times the issue of VAT charges on sanitary products has been brought to public attention across Europe. On 15 October French MPs voted against reducing the rate of VAT on sanitary products from 20% to 5%. The French government opposed the motion due to the loss of tax revenue by €55 Million (£40 Million). On 26 October British MPs voted against Labour MP Paula Sherriff’s amendment to the Chancellor’s Finance Bill to remove VAT on sanitary products. Currently in the UK a VAT rate of 5% is charged equating to £3 of an average £60 p.a. spend on sanitary products. The charge has attracted attention in various ways including general election manifesto pledges and online petitions. As of 27 October in the UK the ‘Stop Period Tax. Period’ group currently has 253,287 signatures with sister campaigns in France, Italy and Germany which call on the Chancellor to remove VAT on sanitary products. However, the ability to remove VAT is problematic since currently the lowest permissible rate across the EU for sanitary products is 5%.