Among the updated Norms it will be supported more effectively the single market, it will be favored the cross-border trade and it will be developed the digital economy.
The commissioner for economic and financial affairs, taxation and customs, Pierre Moscovici, declared that VAT is a major source of tax revenue for Member States of the European Union. However, at the moment there is a disconcerting fiscal gap: the VAT revenues effectively collected are with 170 billion lower than expected, which represents an enormous waste of money that could be invested in economic growth and in creating jobs.
In addition, the Member States should have more autonomy in terms of defining their reduced VAT rates, following that the action plan proposed to provide answers to all these concerns.
The action plan is considering, among other things:
1. The development of key principles for a future single European system of VAT;
2. Short-term measures to combat fraud in the field;
3. The update of the framework regarding VAT rates and defining the options that allow a greater degree of flexibility for Member States in their establishment;
4. Plans to simplify the VAT rules for electronic commerce and IMM.
The next steps are as follows:
The Commission will request the European Parliament and the Council, with the support of the European Economic and Social Committee, to provide clear political guidance on the options presented in this plan of action and to confirm the support given to the reforms set.
In 2016 and 2017 the Commission will present the proposals on all issues discussed.