MEPs will respond on Wednesday to EU Commission plans to crack down on VAT fraud. Reform could bring an extra €40 billion a year in revenue for member states.
MEPs will give their views after the Commission unveils its “Fair Taxation Package II”, which is part of wide-ranging reforms aimed at simplifying and modernising VAT rules across the EU. Other measures are likely to include a simpler VAT system for small firms and an overhaul of rules on VAT rates.
The Commission estimates that EU member states lose around €50 billion per year through cross-border VAT fraud, up to 80% of which could be eliminated by the proposed reforms.
Cheaper, quicker cross-border VAT payments
As part of the wider reforms for a more streamlined European VAT system, MEPs will vote on Thursday, on whether to extend the use of an online portal for firms to pay their VAT bills. The online “Mini One-Stop-Shop” (MOSS) -- an electronic registration and payment system originally introduced in 2015 -- would slash compliance costs for businesses supplying goods and services across Europe while, it is hoped, raising more VAT revenue for member states.
Procedure: Commission statement; Consultation
Debate: Wednesday, 29 November
Vote: Thursday, 30 November