REPORT on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax, with regard to the obligation to respect a minimum standard rate

27.3.2018 - (COM(2017)0783 – C8‑0007/2018 – 2017/0349(CNS)) - *

Committee on Economic and Monetary Affairs
Rapporteur: Roberto Gualtieri
(Simplified procedure – Rule 50(1) of the Rules of Procedure)

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax, with regard to the obligation to respect a minimum standard rate

(COM(2017)0783 – C8‑0007/2018 – 2017/0349(CNS))

(Special legislative procedure – consultation)

The European Parliament,

–  having regard to the Commission proposal to the Council (COM(2017)0783),

–  having regard to Article 113 of the Treaty on the Functioning of the European Union , pursuant to which the Council consulted Parliament (C8‑0007/2018),

–  having regard to Rule 78c of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs (A8-0124/2018),

1.  Approves the Commission proposal;

2.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

3.  Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;

4.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

EXPLANATORY STATEMENT

The minimum of 15% for the standard VAT rate has been prolonged six times since the Council agreed in 1992 on rules limiting the discretion of Member States to set VAT rates, requiring Member States to apply this minimum standard rate over a certain period.

The Commission several times submitted proposals for the prolongation of this minimum rate at the last moment before the expiry date. As such this had no practical implication, since all Member States applied standard VAT rates well above 15% (currently all Member States apply a standard rate of at least 17%). However already the past rapporteur (on the previous proposal) rightly criticised the Commission for having submitted the proposal too late, and asked the Commission to submit future similar proposals in a timelier manner.

While this proposal has yet again been submitted at the last moment, your rapporteur welcomes that the proposal will finally permanently set an agreed limit that ensures the proper functioning of the internal market whilst leaving flexibility for Member States in setting the standard VAT rate, instead of numerous last-minute prolongations of a temporary minimum rate.

This proposal is part of a series of several legislative Commission proposals aiming at reforming the EU VAT system, and moving towards a definitive EU VAT system. Your rapporteur considers these reforms urgently necessary, and calls upon Member States to agree and implement them swiftly.

PROCEDURE – COMMITTEE RESPONSIBLE

Title	Common system of value added tax, with regard to the obligation to respect a minimum standard rate
References	COM(2017)0783 – C8-0007/2018 – 2017/0349(CNS)
Date of consulting Parliament	9.1.2018
Committee responsible        Date announced in plenary	ECON 18.1.2018
Rapporteurs        Date appointed	Roberto Gualtieri 23.1.2018
Simplified procedure - date of decision	23.1.2018
Discussed in committee	20.3.2018
Date adopted	26.3.2018
Date tabled	28.3.2018