The European Commission has proposed a single VAT area

The European Commission has proposed new rules for the creation of a single EU VAT area, in order to decisively reduce the VAT frauds amounting to 50 billion euros a year in the EU, while it would support the businesses and ensure public revenue – Valdis Dombrovskis said on Thursday.

The EU Commissioner responsible for Euro and Social Dialogue underlined that the Commission’s proposal for new rules aims to give Member States more flexibility in setting VAT values and creating a more favorable tax environment for the growth of SMEs.

As he said, the common EU VAT rules adopted by the Member States in 1992 have become too restrictive and allow the use of a reduced VAT rate for only a few sectors and products. The proposal gives the Member States greater autonomy in terms of tax rates.