Semeta revealed details of the VAT reform

Algirdas Semeta, Commissioner for Taxation of the European Union, revealed details of the European Commission's strategy to reform the VAT system throughout the EU territory, aimed at simplifying the tax system and its transformation to more effective and reliable instrument for strengthening the business sectors and the domestic market of the region.

Among the proposals shaping the essence of the strategy are plans for improving the "one-stop-shop approach" used by subjects engaged in cross-border trade in order to reduce administrative burdens, to introduce standardized VAT returns available in all EU languages and a centralized VAT information system and to conduct periodic forums in order to advise all interested parties on the relevant European legislation.

In order to ensure quality and stability of revenues from VAT, currently reaching about 20% of the income of all Member States, the Commission proposes to limit the use of reduced tax rates and exemptions. This could generate a qualitatively new revenue for Member States without the need to burden citizens of possible further increase of the standard rates.

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