In a written answer on 16 July 2026, European Commissioner for Climate Action Wopke Hoekstra declined to add sun cream to Annex III of the VAT Directive, which lists goods eligible for reduced VAT rates. The decision blocks a potential tax break for consumers and the sunscreen industry, maintaining the current minimum 15% VAT rate on sun cream as a cosmetic product.
The answer responds to a question from Renew MEP Billy Kelleher, who argued that making sun cream more affordable could help prevent rising skin cancer rates, now the fourth most prevalent cancer in the EU. Kelleher cited Australia's successful reduction in skin cancer incidence after similar measures.
Hoekstra explained that Category (3) of Annex III covers pharmaceutical products, and the 2022 VAT rates reform (Directive 2022/542) made only minor changes, not extending to non-pharmaceuticals. He noted that reduced VAT rates often have limited impact on consumer prices due to low pass-through, as shops are not required to pass savings on. The 2022 reform was a hard-fought political compromise, and the Commission does not intend to propose new amendments in this area.
No concrete proposals or timelines were offered. The answer signals that the Commission prioritises fiscal stability over public health tax incentives for sun cream, leaving the issue to Member States' discretion under existing rules. No further institutional follow-up is expected.