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.
Debate: Tuesday, 2 October
Vote: Wednesday, 3 October