MEPs to back VAT overhaul to simplify system and cut fraud  

MEPs will vote on Wednesday to broadly back the Commission’s proposed reform of the VAT system, while proposing adjustments to set a maximum VAT rate.

The two pieces of legislation on the table are part of the wide-ranging package of measures proposed by the European Commission to reform the VAT system and improve cross-border clarity. One aims to facilitate trade for SMEs within the single market and reduce VAT fraud, while the other deals with setting up a clearer system of VAT rates.

Every year, EU countries lose up to €50 billion to cross-border Value Added Tax fraud.

MEPs are expected to back the broad drive put forward by the Commission, while proposing to establish a maximum VAT rate of 25%, dispute resolution mechanisms, and an information portal through which to quickly obtain accurate information on VAT rates in other member states.

Procedure: Consultation

2017/0251(CNS) -  Definitive VAT regime
2018/0005(CNS) - Rates of value added tax

Debate: Tuesday, 2 October

Vote: Wednesday, 3 October