1 / 23

POSSIBLE FUTURE DEVELOPMENTS IN EUROPEAN VAT LAW

POSSIBLE FUTURE DEVELOPMENTS IN EUROPEAN VAT LAW. Stephen Bill European Commission. WHY DO WE NEED AN EU VAT ?. ART . 93 of Treaty requires harmonisation „ to the extent … necessary to ensure the establishment and functioning of the internal market “. CURRENT POLICY OBJECTIVES.

danton
Télécharger la présentation

POSSIBLE FUTURE DEVELOPMENTS IN EUROPEAN VAT LAW

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. POSSIBLE FUTURE DEVELOPMENTS IN EUROPEAN VAT LAW Stephen Bill European Commission International Tax Conference

  2. WHY DO WE NEED AN EU VAT ? • ART . 93 of Treaty requires harmonisation „ to the extent … necessary to ensure the establishment and functioning of the internal market “ International Tax Conference

  3. CURRENT POLICY OBJECTIVES • REDUCING TAX COMPLIANCE COSTS • MODERNISING THE COMMON VAT SYSTEM • ENABLING MEMBER STATES TO MAINTAIN STABLE REVENUE BASES International Tax Conference

  4. SIMPLIFICATION MEASURES • VAT PACKAGE (adopted) • E-INVOICING International Tax Conference

  5. MODERNISATION • POSTAL SERVICES • FINANCIAL SERVICES • VOUCHERS AND OTHER PROMOTION SCHEMES • PUBLIC AUTHORITIES International Tax Conference

  6. REDUCED RATES • PRIMARY ROLE OF VAT – RAISE REVENUE International Tax Conference

  7. REDUCED RATES(locally delivered services) • JULY 2008 PROPOSAL • DECEMBER EUROPEAN COUNCIL CONCLUSIONS • CURRENT ACTIVITIES International Tax Conference

  8. REDUCED RATES(ENERGY & CLIMATE CHANGE) • “GREEN“ PRODUCTS • “GREEN“ HOUSING International Tax Conference

  9. COMBATING FRAUD - MAIN PROBLEM • MISSING TRADER FRAUD IN INTRA-COMMUNITY TRADE OF GOODS International Tax Conference

  10. COMBATING FRAUDCommission communication in May 2006 THREE POSSIBLE APPROACHES TO COMBATING MISSING TRADER FRAUD : • Increased cooperation between Member States • Taxation of intra-community supplies • Application of generalised Reverse Charge International Tax Conference

  11. COMBATING FRAUD • DEBATE CONCLUDED (temporarilly) • CONCLUSION IS TO CONCENTRATE ON RE-INFORCING THE EXISTING SYSTEM International Tax Conference

  12. COMBATING FRAUD Strategy involves 3 categories of actions: 1) Those aimed at preventing potential fraudsters from abusing the system; 2) Those aimed at enhancing the tools for detection; 3) Those aimed at improving the possibility of collecting unpaid tax. International Tax Conference

  13. LONGER TERM ISSUES 2 FUNDAMENTAL CHALLENGES • HOW CAN WE FURTHER FACILITATE TRADE IN THE INTERNAL MARKET • WHILST SAFEGUARDING TAX REVENUES ? International Tax Conference

  14. PROCESS OF EVOLUTION • A POTTED HISTORY OF EUROPEAN VAT International Tax Conference

  15. 1st and 2nd VAT Directives (April 1967) Legal and Political commitment to the establishment of a common VAT system based on taxation at ORIGIN. International Tax Conference

  16. Attempts to apply origin system in the 1980s and 1990s • Rules and tax rate of country of origin (implying quasi-complete harmonisation) • Receipts reallocated to country of consumption International Tax Conference

  17. Why has origin system not been implemented? • Reluctance to give up fiscal sovereignty and accept the necessary harmonisation of rates etc. • Reluctance to rely on other Member States to collect a substantial portion of VAT revenue. International Tax Conference

  18. What has happened since 2000? • Emphasis increasingly placed on taxing in country of consumption • Harmonisation efforts concentrated on areas where compliance burdens could be reduced without undermining fiscal sovereignty International Tax Conference

  19. Where are we now?Since 1993: • B2C supplies of goods above minimum threshold: taxed in country of consumption (supplier required to register in country of consumption) • B2B supplies of goods: taxed in country of consumption via I. C. supply plus I.C. Acquisition International Tax Conference

  20. Where are we now? • From 2010: B2B supplies of services will be taxed in country of consumption using reverse charge mechanism • From 2015: Certain B2C supplies of services will be taxed in the country of consumption using a one stop shop mechanism International Tax Conference

  21. WHERE WILL WE BE IN THE FUTURE? • DESTINATION BASED SYSTEM (THUS RESPECTING FISCAL SOVEREIGNTY) • MIGHT BE NECESSARY/ POSSIBLE TO RE-THINK CURRENT RULES REGARDING RATES International Tax Conference

  22. WHERE WILL WE BE IN THE FUTURE? • FURTHER DEVELOPMENT OF 1 STOP SHOP PRINCIPLE • SINGLE ON-LINE RETURN FOR ALL EU SUPPLIES (?) International Tax Conference

  23. WHERE WILL WE BE IN THE FUTURE? • POSSIBLE NEW WAYS OF COLLECTING TAX (?) International Tax Conference

More Related