The European Commission has adopted a proposal for the amendment of the VAT Directive with regard to, amongst other things, VAT on energy products. The Commission proposes to extend the VAT scheme for natural gas currently applicable to supplies and imports via the distribution system, to the supply and import of natural gas by all types of pipeline and by vessels transporting natural gas. The same rules would apply to the supply and import of heat or refrigeration via heat and/or refrigeration networks. The proposal also simplifies the procedure whereby EU Member States may apply a reduced VAT rate to the supply of natural gas, electricity and district heating. To be adopted, the proposal must be accepted unanimously by the EU Council.