Volume: 2 Issue: 8
The European Commission is expected to reject a 2 September resolution adopted by the European Parliament calling on it to introduce a 15% value-added tax (VAT) on cross-border sales of goods and services within the European Union, which are currently exempt from VAT until sold on in the destination country.
"In 2006, the Commission proposed three ways of tackling VAT fraud and requested political guidance from the EU Council", said a Commission spokesperson. "The issue has been addressed several times by the Council of Ministers (ECOFIN) where it became clear that...there is no consensus for support for the first two options - introduction of a generalised reverse charge mechanism or taxation of the intra-community supplies. The only mandate that the Commission has received...is to go ahead in preparing proposals for improving the existing administrative cooperation."
Those 17 March 2008 proposals on amending Directive 2006/112/EC on a system to combat fraud were aimed at speeding up the collection and exchange of information on intra-community transactions from 2010, and will be unveiled next October/November.