VAT Action Plan: EU Commission Presents Measures to Modernise VAT


  1. Action towards a robust single European VAT area;
  2. Action to tackle VAT fraud;
  3. Action to support SME’s and E-Commerce
  4. Action on VAT rates.
  1. The first consists of amending the existing VAT Directive, whilst maintaining current reduced rates and derogations and undertaking reviews of goods and service lists that benefit from reduced rates.
  1. The second option involves giving Member States more autonomy over reduced rates they put in place through some general criteria. Safeguards would be put in place to avoid unfair tax fraud and to prevent excessive complexity and distortion which could increase compliance costs. EU legislation, such as Single Market and competition rules and the EU’s economic governance framework will still apply.

The complete Ecuity briefing can be found here: VAT Action Plan: EU Commission

For more information on this briefing, please contact Gaia Stigliani
0121 7095587