European Union – Proposals on VAT to increase flexibility and businesses’ growth

 

The European Commission has proposed VAT changes in order to favour the flexibility

and small and medium enterprises’ growth, notably:

–  Possibility to apply two separate reduced rates, between 5% and the standard rate

decided by the Member State;

–  Exemption from VAT (or ‘zero rate’);

–  A reduced rate set at between 0% and the current reduced rates;

–  Current list of products and services will be abolished and replaced by a new list to

which the standard rate would always be applied.

–  A simplification measure for small businesses (€2 million revenue threshold);

–  The possibility to exclude VAT exempt small businesses from obligations relating to

identification, invoicing, accounting or returns;

–  A VAT exemption for companies operating in more than one Member state (turnover

threshold of €100,000).

Source: http://www.vatsystems.eu/

 

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