Written by Ana Claudia Alfieri (1st edition),
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, it is a very efficient consumption tax. However, the existing rules governing intra-Community trade are 25 years old and the current common EU VAT system presents such problems as vulnerability to fraud, high compliance costs for businesses and also a heavy administrative burden for national authorities.
The reform of the system is planned in several consecutive steps, first for goods and then for services, and will take some years. This proposal introduces the basic features of the definite VAT system for business-to-business (B2B) transactions of goods and aims to harmonise and simplify certain rules of the current VAT system, by amending the VAT Directive (Directive 2006/112/EC).
- July 2018: ‘Introducing the definitive VAT system for B2B cross-border trade‘ (1st edition)
|Proposal for a Council Directive amending Directive 2006/112/EC as regards harmonising and simplifying certain rules in the value added tax system and introducing the definitive system for the taxation of trade between Member States|
|Committee responsible:||Economic and Monetary Affairs (ECON)||COM(2017) 569
|Rapporteur:||Jeppe KOFOD (S&D, Denmark)||2017/0251(CNS)|
|Ivana Maletić (EPP, Croatia)
Sander Loones (ECR, Belgium)
Thierry Cornillet (ALDE, France )
Dimitrios Papadimoulis (GUE/NGL, Greece)
Molly Scott Cato (Greens/EFA, United Kingdom)
Barbara Kappel (ENF, Austria)
|Consultation procedure – parliament adopts only a non-binding opinion|
|Next steps expected:||Vote in ECON committee on draft report|