- The European Parliament is concerned that the increasing number of reduced and preferential VAT rates across the EU is causing legal uncertainty, compliance complexity, and revenue loss.
- Evidence suggests reduced VAT rates are not always passed on to consumers, questioning their effectiveness as social or affordability tools.
- Parliament calls for regular, evidence-based reviews of preferential VAT rates to ensure they are justified, efficient, and support revenue sustainability.
- The growing patchwork of VAT rates is creating administrative burdens for businesses and tax authorities, and may undermine the intended policy outcomes.
- Recent and upcoming VAT rate changes in several countries highlight the need for a reassessment of the current VAT rate-setting framework.
Source: vatcalc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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