- VAT Expert Group Report: The “VAT after Vida” report suggests improvements to the EU VAT system, focusing on neutrality and the expansion of the VAT base, while publicly discussing broader issues affecting VAT functionality and competitiveness in the common market.
- Neutrality Challenges: The report highlights how VAT’s neutrality is compromised by limitations on the taxable base, particularly in sectors like banking, insurance, gambling, and digital services, leading to competitive distortions and inefficiencies in the internal market.
- Proposed Solutions: Suggestions include introducing indirect taxes for specific objectives (e.g., green or digital taxes) alongside VAT to maintain technological neutrality and competition, with potential revenue from these taxes directed to European institutions, similar to customs duties.
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