On 7 April 2016, the European Commission (EC) adopted an action plan that seeks to provide a definitive VAT system for cross-border suppliers.
A timeline of all the actions contained in the plan, Towards a single EU VAT area, has been presented by the Commission and a public consultation launched in respect of three legislative proposals:
- Towards a robust single European VAT area
- Adapting the VAT system to the needs of small business (SMEs)
- Towards a modernised VAT rates policy
Time to decide?
This open public consultation aims to canvass the views of businesses, national administrations and authorities, academics, tax experts, representative organisations and the general public on the:
- Need for EU action and, in particular, the need for greater freedom for Member States to fix VAT rates
- Proper balance between harmonisation and Member States autonomy in setting VAT rates
- Problems and risks linked to differentiation of VAT rates within the Single Market
- Desirable direction for reform as well as stakeholders' views on the proposed policy options and their impacts.
The consultation closed on Sunday 20th March 2017.