Value Added Tax (VAT) is a fundamental tax instrument in the European Union raising 20 percent of total tax revenue, but the structure of VAT-rates within and between member states is bewilderingly diverse and complex. On the one hand, it is argued that the current VAT-structure is economically inefficient and that VAT-rates should be made more uniform. On the other hand, we are witnessing a constant debate about extending lower VAT-rates to even more products based on arguments of efficiency and equity. Which side has the upper hand?