Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

European Commission plans to make VAT simpler

12 April 2016
Issue: 4545 / Categories: News

EU member states will have more control to set VAT rates.

The European Commission has presented an action plan setting out ways to improve the EU VAT system to make it simpler.

The plan will introduce key principles for a single European VAT system; look at how to tackle fraud; update the framework for rates and grant member states more flexibility in setting them; and simplify the rules for e-commerce.

On giving member states increased autonomy on applying zero or reduced rates the commission proposes two options. One would be to maintain the minimum standard rate of 15% and to review regularly the list of goods and services that can benefit from reduced rates based on member states’ input.

The second option would abolish the list of goods and services that can benefit from reduced rates. This would however require safeguards to prevent fraud and avoid unfair tax competition in the single market. It could also increase...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon