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Last 12 August 2016 the European Economic and Social Committee (EESC) gave its opinion about the VAT action plan published by the European Commission last April.
In its opinion, the EESC supported the Commission´s initiative, particularly on the proposed destination principle for intra-Community movements. The EESC also stressed the importance of implementing the VAT Action plan as an indivisible initiative in all Member States, hence disallowing individual countries to stay out of this proposal. The consultative body also reminded the EU about the need to make current VAT rules more business friend and easier to comply with by European companies of all sizes. The Opinion is available in the website of the EU authorities.
The VAT Action Plan was published last April with an ambitious proposal to reform the current VAT regime in the EU. This proposal included changes to the VAT rate rules, where Member States would be given more freedom on the decision of the applicable VAT rates. It also included changes for online businesses and introduced the destination principle. Following the Brexit decision of the UK, there is some uncertainty about the outcome of large EU initiatives that were proposed to be introduced in the coming future.