Brussels, 08/10/2012 (Agence Europe) - On Monday 8 October, the European Commission launched a public consultation exercise on the impact of changes in the EU reduced-rate VAT rules. The consultation will run until 3 January 2013 and is part of the wider work being done to fundamentally reform the EU VAT system, in order to make it simpler, more efficient and more robust. The current EU VAT system is highly complex with a raft of exemptions to the list of goods and services for which the EU allows reduced-rate VAT to apply, a list drawn up several years ago. Interested parties are being asked whether the once justified reduced VAT rates now have the effect of distorting competition within the Single Market; whether reduced VAT on water, fuel, buildings management and housing run counter to the EU's strategic objectives to defend the environment, health and well-being; and how similar goods and services should be treated for VAT purposes, taking into account technological developments (paper and online VAT returns). The consultation is part of a broad overview. The Commission does not yet have any specific changes in mind, but will use the information garnered draw up new legislation to be unveiled by the European Commission in 2013. For further information, see: http://ec.europa.eu/taxation_customs/common/consultations/tax/index_en.htm . (FG/transl.fl)