Strasbourg, 15/12/2000 (Agence Europe) - The European Parliament, when consulted on the European Commission proposal to extend for five years, until 31 December 2005, the minimum normal VAT rate, called for the system to be kept in place for a shorter period. The extension would in fact implicitly mean keeping the transitional Vat system in place. The Parliament, however, recognises the fact that it is currently impossible to replace this system with a definitive system based on the principle of taxation in the country of origin (and not in the country where the good or service is consumed); but it restates its aim of achieving this as soon as possible.
Following its rapporteur, Portuguese Socialist Helena Torres Marques, the European Parliament adopted: - an amendment whereby it affirms that the introduction of the euro (in 2003) will be accompanied by a degree of transparency without precedent in prices throughout the single market, which will require greater coordination of VAT rates (the justification for this amendment specifies that it would be preferable to keep the current provisions for a maximum three year period, and not for five years as proposed by the Commission); - an amendment indicating that the normal rate of VAT applicable cannot be less than 15% (agreed since 1992) until 31 December 2003 instead of 31 December 2005.