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/
