(04 October 2017) – The European Commission has today launched plans for the biggest reform of EU VAT rules in a quarter of a century.
According to the Commission, the reboot would improve and modernise the system for governments and businesses alike.
Overall, over€150 billion of VAT is lost every year, meaning that Member States miss out on revenue that could be used for schools, roads and healthcare. Of this, around €50 billion – or €100 per EU citizen each year – is estimated to be due to cross-border VAT fraud. This money can be used to finance criminal organisations, including terrorism.
It is estimated that this sum would be reduced by 80% thanks to the proposed reform.