Reduced VAT rates have positive and negative effects. In this article, the authors briefly discuss the main studies available on VAT rate structures and the impact of those structures on tax revenues. They have also developed a method for calculating the “erosive effect” of reduced rates and exemptions on the VAT revenues that each of the 27 Member States can theoretically derive from consumption by households. On the basis of the results of that analysis, the authors show the regional patterns of those VAT concessions.