- Infringement Procedure Initiated: The European Commission has opened an infringement procedure by sending formal notices to Romania, Belgium, Bulgaria, Greece, Spain, Lithuania, and Portugal for failing to communicate the measures for the full transposition of EU Directive 2022/542 on VAT rates, which was due by December 31, 2024.
- Directive Provisions: The directive permits broader use of reduced VAT rates, including zero taxes on essential products like food and pharmaceuticals, and allows member states to exempt small suppliers with annual turnovers not exceeding €85,000, with the possibility of different thresholds based on economic sectors.
- Response Deadline: The member states have two months to respond to the European Commission’s requests for compliance, after which the Commission may escalate the matter by issuing a reasoned opinion if satisfactory responses are not provided.
Source Profit.ro
