Opinion Factsheet  

Handlingsplanen för mervärdesskatt: Mot ett gemensamt mervärdesskatteområde i EU

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Opinion Number: CDR 2419/2016
Rapporteur: 
Commission: ECON
Status: Adopted
Date: 12/10/2016
 
To communicate the views of LRA to the EC, Council and EP on the key VAT reform issues and implications for regional and local economies, SMEs and border regions
To underline the importance of tackling VAT fraud, which results in major losses in tax revenue, with knock-on effects on the ability to provide quality public services and investment
This opinion is being prepared. Its impact cannot be evaluated at this stage
THE EUROPEAN COMMITTEE OF THE REGIONS

 recognises that the VAT system is an essential part of the single market and should be reformed to make it simpler, fairer, more effective and less exposed to fraud;

 notes the importance of the single VAT area for local and regional authorities as they are responsible for levying VAT in some Member States and redistribution of VAT revenue is central to financial equalisation schemes for their benefit;

 advocates appropriate VAT simplification measures for SMEs as fragmentation and complexity result in major compliance costs for businesses involved in cross-border trade;

 calls for territorial impact assessment of proposals to offer greater flexibility in setting VAT rates; believes the option whereby the list of goods and services eligible for reduced rates is extended and regularly reviewed is liable to entail less risks than abolition of this list;

 supports VAT reform that allows the digital and mobile economy to thrive; welcomes extending the one-stop-shop for electronic services to also cover goods; supports removal of the VAT exemption for imports of small consignments;

 shares the view that the new VAT system should be based on the principle of destination;

 welcomes proposals to allow businesses engaged in cross-border trade to settle all VAT issues in their country of origin;

 calls for the abolition of differences between Member States regarding VAT derogations;

 believes that banks should fully cooperate with tax authorities in cases of suspected VAT fraud, within the limits of the applicable data protection legislation;

 notes that the relevant national institutions (including tax administrations) should take the responsibility to monitor activities of enterprises, which are operating legally; this responsibility should not be delegated to counterparties, other enterprises, as the Court of Justice of the EU has stated repeatedly in the judgments regarding the VAT.

Importance

High
Medium
Low
 

Adoption of the draft opinion in ECON

ECON Commission adopts the opinion by majority vote‹

 
21 Jun
 

Meeting in the European Commission

Rapporteur meets officials of the Directorate-General for Taxation and Customs Union ​

 
13 May
 

Rapporteur meets representative associations

Rapporteur has meetings with representatives of Eurochambres and CEMR

 
13 May
 

Appointment of rapporteur

Dainis Turlais (LV/ALDE) appointed rapporteur for the opinion by the ECON Commission

 
22 Apr
 

Communication on an action plan on VAT

Adoption of the Communication on an action plan on VAT – Towards a single EU VAT area
COM(2016) 148 final

 
07 Apr