The European Commission has proposed a comprehensive reform in the EU VAT system

The European Commission has presented the most comprehensive plans of the past twenty-five years for EU VAT rules on Wednesday. The plan would reduce the possibility of VAT fraud and would improve, modernize and simplify the VAT system for the governments and the businesses.

Pierre Moscovici, European Commissioner for Economic and Financial Affairs, says that in the European Union (EU) more than 150 billion euros worth VAT is lost every year due to faults and loopholes in the tax system, leaving the Member States to lose substantial revenues that could be spent on renovating schools or to improve health care. (MTI)