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