EU – “The Future of VAT” – update

EU Press Release 15 May 2012: “The Future of VAT” – update

The Council of the European Union issued a press release in which it adopted a number of conclusions on ‘The future of VAT’.

Following is a summary of some of the main VAT specific points covered in the press release:

A simpler VAT system

  • Reduce VAT compliance costs and administrative burdens
  • Timely implementation of a mini ‘one-stop-shop’ by 2015
  • Intention to present a proposal for creating a standardised VAT declaration.

A more efficient VAT System

  • Examine further the present EU rules on the application of VAT to the public sector
  • Clarification needed concerning non-profit-making organisations
  • Restricted use of the reduced rates and intension to launch an assessment of the current VAT rates structure in 2012.

A more robust and fraud-proof VAT system

    • Must take into account new technological developments.
    • Analyse the feasibility of new tax collection methods.

A VAT system tailored to the single market

  • Concurs that the origin principle, ‘taxation in the Member State of origin of the supply of goods or services’, is unlikely to be achievable.
  • Examine in detail the different possible ways to implement the destination principle.

Read the press release in full: The Council of the European Union – Economic and Financial Affairs Press Release

 

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