VAT overhaul planned

 EU plans VAT overhaul

The European Commission has proposed an overhaul of VAT rules that could hand back more power to national capitals to set lower rates. The new plans will give EU members greater power to set lower rates for certain good and services, through either updating and reviewing the list of products that can be taxed less more frequently with greater input from governments, or scrapping it altogether. In the second case, governments could set the reduced rates they wish as long as they don’t create tax distortions. The EC estimates that the proposed plan could help governments reclaim €40bn a year in revenue lost to fraud.

Source: The Guardian (08/04/2016)