![VAT for small enterprises [EU Legislation in Progress]](https://i0.wp.com/epthinktank.eu/wp-content/uploads/2018/05/eprs-briefing-621901-vat-for-smes-final.jpg?fit=1000%2C642&ssl=1)
Written by Cécile Remeur (2nd edition, updated on 25.10.2018),
Value added tax (VAT) is a consumption tax borne by the final consumers and collected by businesses as taxable persons. Businesses have VAT administrative obligations and act as VAT collectors. This generates compliance costs that are higher for small and medium-sized enterprises (SMEs) than for bigger businesses, in spite of the small business exemption, especially in the case of cross-border activities.
The proposal for a revision of the VAT Directive relating to the common system of value added tax as regards the special scheme for small enterprises simplifies the rules, so as to reduce VAT compliance costs for SMEs by introducing simpler measures regarding invoicing, VAT registration, accounting and returns for SMEs, whether they operate in wholly domestic markets only or also across borders in the EU.
The legislative proposal falls under the consultation procedure. The European Parliament adopted its resolution on 11 September 2018, and the proposal is now with the Council.
Interactive PDF
| Proposal for a Council directive amending directive 2006/112/EC on the common system of value added tax as regards the special scheme for small enterprises | ||
| Committee responsible: | Economic and Monetary Affairs (ECON) | COM(2018) 21 of 18.1.2018
procedure ref.: 2018/0006(CNS) Consultation Procedure |
| Rapporteur: | Tom Vandenkendelaere (EPP, Belgium) | |
| Shadow rapporteurs:
|
Alfred Sant (S&D, Malta) Stanisław Ożóg (ECR, Poland) Caroline Nagtegaal (ALDE, the Netherlands) Paloma López Bermejo (GUE/NGL, Spain) Molly Scott Cato (Greens/EFA, United Kingdom) |
|
| Next steps expected: | Adoption by the Council | |
