argomento: News del mese - Diritto Internazionale e Comunitario

Articoli Correlati: VAT system - SME - european commission - reform

The European Commission has presented a proposal that aims to ensure greater autonomy for Member State governments in setting VAT rates and creating a more favorable environment for SME support and development in the European context. The proposal is part of a broader process aimed at creating a single European area and reducing VAT fraud cases by giving more autonomy to the governments of the E.U. Member States with the freedom to set the level of VAT rates and choose which rates to apply to products. In detail: next to a minimum standard rate of 15%, member States may have two lower rates, between 5% and 15%, an additional rate between 0% and 5% and an exemption from VAT (at “zero rate”). Furthermore, to safeguard public revenues, Member States will have to ensure that the weighted average VAT rate is at least 12%. Finally, in support of SMEs, a series of measures to reduce VAT compliance costs, proportionally higher than large companies, due to the complexity and fragmented nature of the European VAT system.