The European Commission is hoping to cut the costs of VAT compliance for European businesses from €68 to €56.1 billion. The current rules allow member states to grant SMEs VAT exemptions, an option they are only too ready to make use of, but the way the exemption has been designed is not ideal, in the Commission's view.
Currently, these exemptions are permitted on the basis of a turnover threshold set nationally. Without calling these national thresholds into question, the Commission is...