19/10/10 Reverse charge to avoid VAT fraud
The European Council approved reverse charge rule for 4 Member States
The European Council approved today measures from 3 member states, Italy, Germany and Austria to implement the reverse charge rule for the supply of certain high risk products. Furthermore it approved the UK continues to use this measure they implemented already years ago.
The measure allows Member States to apply the reverse charge mechanism specifically for the supply of mobile phones and other high risk electronic equipement in order to limit the risk of VAT fraud.
Via this link you find the decision of the European Council.
20/10/10 More details Commission proposal
Details on the Commission proposal for alternative VAT system in the EU
On the site of the European Commission more information is available on the proposal that was published yesterday in the European Parliament meeting on the EU budget for the future. The news item on this website yesterday already mentioned the proposal includes suggestions to dramatically change the current VAT system, replacing it by an EU VAT system. Furthermore there are thoughts to introduce an EU-wide CIT system and levies on air transport, financial transactions, greenhouse gass emission rights.
Download here the budget review from the European Commission. There are annexes with this document you can find here. In the annexes you find more details on the alternatives collected by the Commission and to be investigated further.
19/10/10 European Commission proposes alternative VAT
An alternative VAT
Today the European Commission announced it is considering alternatives to the current VAT system in order to safeguard the EU budget in the future. Here is a copy of the announcement. The full text you can find here.
Very interesting are the alternatives the Commission is thinking about. New levies on financial transactions, green house emissions, air traffic, an EU Corporate income tax and a special VAT rate for these transactions. At the same time the contributions of the Member States would be lowered.
......Finding the right mix of resources
In 1988, Member States’ contributions, based on their GNI, represented 10% of the EU budget, these days they amount to about 70%. Not only does this go against the spirit of the Rome and Lisbon Treaties but this gave birth to the bitter debates about “net contributors” and the complex concepts of rebates with the consequences of favouring instruments with geographically pre-allocated financial envelopes rather than those with the greatest EU added value. The Commission therefore puts forward the option of reducing Member States’ contributions by abolishing the VAT-based own resource and progressively introducing one or several new own resources as a replacement. Possible candidates for new own resources could be a share of a financial transaction or financial activities tax, auctioning of green house gas emission allowances, an EU charge related to air transport, a separate EU VAT rate, a share of an EU energy tax or of an EU corporate income tax.
11/10/10 Link to VAT blog Mark Houtzager
VAT blog Mark Houtzager
You can find the link to Mark Houtzager's VAT blog in the list of links on my website. Mark regularly posts interesting news items on his blog. Some relate to the discussion of introducing VAT in the US but there are also interesting news items on VAT in the rest of the world. Read more on his blog.