Judgment_paragraph 40 · Autoridade Tributária e Aduaneira v DSR – Montagem e Manutenção de Ascensores e Escadas Rolantes SA (C-218/21)

40As regards the context of which point 2 of Annex IV to the VAT Directive is part, that provision, in so far as it allows a reduced rate of VAT to be applied, constitutes an exception to the principle of the application of the standard rate and must therefore be interpreted strictly (see, to that effect, judgment of 1 October 2020, Staatssecretaris van Financiën (Reduced rate of VAT for aphrodisiacs), C‑331/19, EU:C:2020:786, paragraph 30 and the case-law cited).