The EU Council published its draft report on VAT
DRAFT REPORT
on the draft Council directive amending Directive 2006/112/EC as regards rates of value added tax (14754/2021 – C9-0456/2021 – 2018/0005(CNS))
Committee on Economic and Monetary Affairs
The European Parliament,
1. Approves the Council draft;
2. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;
3. Asks the Council to consult Parliament again if it intends to substantially amend the text approved by Parliament;
4. Instructs its President to forward its position to the Council, the Commission and the national parliaments.
Overall, the deal struck by the Council on this delicate subject is not only a step in the right direction towards using taxation to build a greener Europe. It also maintains the flexibility for Member States to lower VAT on essential products to benefit low-income households and, as such, tackle the regressiveness of the VAT system.
However, there is urgency to move to a definitive VAT system based on the principle of taxation in the country of destination.
Therefore the Council should adopt quickly the COM(2018) 329 amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States.
Taking into account the time needed to transpose the Directive in Member States’ legislation and the high political unity to speed up its adoption, your rapporteur proposes that Parliament approves the proposal without amendments pursuant to a simplified procedure without amendments (rule 52).
Source: europarl.europa.eu
