Brussels, 13/10/2011 (Agence Europe) - The European Parliament (EP) adopted the report by David Casa (EPP, Malta) by 521 votes to 50, with 58 abstentions, on Thursday 13 October. The report recommends major amendments to the VAT system seeking to make it “robust, efficient and simpler for the businesses that use it”, the rapporteur said.
Simplification of the system and cutting red tape, improving infrastructure, more strenuous efforts in tackling fraud, exempting NGOs and SMEs, reducing rates for “green” products are among the main proposals of the resolution adopted. MEPs also advocate strengthening the role of the Commission to promote greater harmonisation of the various systems. The complexity and disparity of member states' rules constitute the main obstacle preventing businesses, and especially SMEs, from deriving full advantage of the internal market and are the main factor in making the system vulnerable to fraud, which costs the EU €100 billion per year.
Among the concrete measures envisaged for reducing red tape and encouraging cross-border trade, the report calls for one-stop-shops to be set up from January 2015, introduction of a linguistically neutral template for a European invoice and establishment of a maximum amount of obligations that can be imposed on businesses by member states. The report also calls for a Commission regulation rather than a directive so as to reduce the risk of inadequate or incorrect transposition of the proposed measures. It also recommends that the VAT rate should not be harmonised, leaving full control to governments over the amount of VAT they charge
The report adopted on Thursday responds to the Green Paper published by the Commission in December 2010 and will inform the strategy on the future of VAT, on which a communication will be published before the end of the year, and concrete proposals which Taxation Commissioner Algirdas Semeta has promised for next year. (FG/transl.rt)