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Parliamentary questions about the EU’s VAT Gap and the urgent need to reform the system

11 September 2019
E-002722/2019
Question for written answer E-002722/2019

to the Commission

Rule 138

Lídia Pereira (PPE)

The Commission’s study on the VAT Gap shows that EUR 137 billion in tax revenue from value added tax has not actually been collected by the Member States. While this figure for 2017 is lower than in previous periods, it is still excessive and amounts to more than 11% of the EU’s VAT revenue.

A much-needed reform of the EU’s VAT system is long overdue and the indecision concerning such a reform is damaging to European citizens and honest businesses alike. Such a reform is essential in order to tackle VAT carousel fraud, tax evasion and tax avoidance. In order to reduce the excessive VAT Gap, it is absolutely essential that national corporation tax regimes, and in particular rules governing company insolvencies, are approximated.

I would like to ask the Commission:

1. In the light of this excessive VAT Gap, how does it justify the indecision concerning the reform of the VAT system in the EU?

2. Is the Commission considering, in the exercise of its powers, ad hoc measures to reduce this Gap and promote the coherence of Member States’ VAT systems?

 

Source: europarl.europa.eu

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