you're reading...
Economic and Social Policies, PUBLICATIONS

More flexible VAT rates [EU Legislation in Progress]

Written by Ana Claudia Alfieri (1st edition),

VAT Concept with wooden block with stacked coins

© Art_Photo / Fotolia

Value added tax (VAT) is an important source of revenue for national governments and the European Union (EU) budget and, from an economic point of view, a very efficient consumption tax. However, the rules governing value added tax as applied to intra-Community trade are 25 years old and the current common EU VAT system is both complicated and vulnerable to fraud. Businesses doing cross-border trade face high compliance costs and the administrative burden of national tax administrations is also excessive.

The reform towards the definitive system is planned in several consecutive steps and will take some years. In the meantime, this proposal will amend the VAT Directive (Directive 2006/112/EC) and reform the rules by which Member States set VAT rates. The reform will enter into force when the definitive system is in place; it will give more flexibility to Member States to set VAT rates and will end the current arrangements and their many ad-hoc derogations.

Interactive PDF

Proposal for a Council Directive amending Directive 2006/112/EC as regards rates of value added tax
Committee responsible: Economic and Monetary Affairs (ECON) COM(2018) 20
18.1.2018
Rapporteur: Tibor Szanyi (S&D, Hungary) 2018/0005(CNS)
Shadow rapporteurs:

 

Werner Langen (EPP, Germany)
Sander Loones (ECR, Belgium)
Thierry Cornillet (ALDE, France)
Miguel Viegas (GUE/NGL, Portugal)
Molly Scott Cato (Greens/EFA, United Kingdom)
Consultation procedure – parliament adopts only a non-binding opinion
Next steps expected: Vote on report in committee

Stage: National Parliaments opinion

Discussion

2 thoughts on “More flexible VAT rates [EU Legislation in Progress]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download the EPRS App

EPRS App on Google Play
EPRS App on App Store
What Europe Does For You
EU Legislation in Progress
Topical Digests
EPRS Podcasts

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 2,774 other followers

RSS Link to Members’ Research Service

Disclaimer and Copyright statement

The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.

For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.

Copyright © European Union, 2014-2018. All rights reserved.

%d bloggers like this: