35In that regard, it follows from Article 98 of Directive 2006/112 that the application of either one or two reduced rates is an option accorded to the Member States as an exception to the principle that the standard rate applies. Furthermore, according to that provision, the reduced rates of VAT may be applied only to the supplies of goods and services specified in Annex III to that directive. It is settled case-law that provisions which are in the nature of exceptions to a principle must be interpreted strictly (see, inter alia, Commission v Spain, paragraphs 18 and 19 and case-law cited, and Erotic Center, paragraph 15).