Implementing the definitive VAT system - Related Opinions

The EESC supports the Commission's aim of ensuring equal treatment, for VAT purposes, for armed forces of Member States working together within an EU framework and NATO armed forces employed in the EU, which already benefit from VAT exemption. The Committee suggests that different national tax authorities should have one system under which the new exemptions are implemented.

The EESC welcomes the Commission’s proposals and recommends that they be swiftly adopted and implemented by the Member States. The Committee agrees with the Commission's proposal to allow Member States to use two reduced VAT rates and recommends that the Member States continue to apply reduced rates to certain classes of goods and services of general interest.

The Committee calls on the Member States to step up their efforts in combatting aggressive tax planning, along with tax avoidance that could lead to significant losses of revenue for Member States' budgets. The EESC believes that the harmonisation and simplification of tax rules should be a priority for the Member States and that the elimination of tax barriers should go hand in hand with these harmonisation efforts. The Committee proposes to extend the common consolidated corporate tax base (CCCTB) and recommends that Member States to look for solutions to implement the recommendations of the High Level Group on Own Resources. Finally, the EESC feels that the introduction of qualified majority voting in the field of direct taxation could support better the efforts to harmonise the rules on establishing the tax base for the main taxes.

The EESC welcomes the "Action Plan on VAT", and calls for a  definitive VAT system that is clear, consistent, robust and comprehensive, as well as proportionate and future-proof. The Committee  welcomes the strong focus on closing the VAT gap and tackling the susceptibility of VAT to fraud. There should be results delivered without delay, including by improving cooperation between tax administrations. “Bona fide” enterprises should be protected and no new excessive measures should be imposed on them. The future system of reduced rates must combine flexibility and legal certainty, be transparent, and for the sake of simplicity the number of reduced rates and exemptions must be limited.