Personal services may get tax breaks from Brussels

The murky business of massage parlours and escort agencies could qualify for tax breaks under plans unveiled by Brussels this week. Eurocrats say they want to cut VAT on "personal services " in an attempt to counteract services which have "gone underground".

Brussels officials describe personal services as any activity which is supplied locally and which is labour intensive, like home help, welfare facilities, and unspecified forms of personal therapy. The Commission, disposed to adding layers of confusion and complexity, says that tax breaks might be considered in areas such as house repairs or renovation - but not for new buildings - and also for the repair of "moveable tangible goods with the exception of means of transport other than bicycles". So cooker or television repairs could qualify, but not car servicing. An open invitation has been issued from Brussels for publicly spirited providers of specialised "personal services" to get that highly-prized tax clearance certificate. Expect an orderly queue outside the Revenue Commissioners.