Activites

• 2016/03/09 Vote in plenary scheduled
• 2016/01/21 Committee referral announced in Parliament, 1st reading/single reading
• 2015/12/14 Legislative proposal published
  • COM(2015)0646 summary

    PURPOSE: to extend, for a period of two years, the current situation where the minimum standard rate of VAT in Member States is at 15%. PROPOSED ACT: Council Directive. ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow its opinion. BACKGROUND: Directive 2006/112/EC on the common system of value added tax ("the VAT Directive") provides that from 1 January 2011 until 31 December 2015 the standard rate may not be less than 15%. This current minimum standard rate provision has been extended five times. The Commission considers that the standard rate of value added tax (VAT) currently in force in Member States, combined with the mechanism of the transitional system has ensured that this system has functioned to an acceptable degree. With new rules on the place of supply of services which favour taxation at the place of consumption, the possibilities for exploiting differences in VAT rates through relocation have been limited further and potential distortions of competition reduced. In the light of results obtained following its Communication of 2011 on the future of VAT, the Commission will publish an Action Plan for a definitive system of Value Added Tax for intra-EU trade that the Commission wants to propose and the reforms it envisages to adapt the existing rules on VAT rates to a definitive regime characterised by the destination principle. This review of rules on VAT rates will address two key issues: the possibility of giving greater autonomy in rate-setting ('enhanced flexibility') to Member States, and the manner of dealing with the temporary derogations allowing for exemptions, zero rates and super reduced rates, that would have to be reconsidered upon the introduction of the definitive VAT regime. CONTENT: pending the decisions on the final shape of the definitive regime, the Commission proposes to amend the VAT Directive in order to extend from 1 January 2016 to 31 December 2017 the period of application of the current minimum standard rate of VAT in Member States, set at 15%. This sixth prolongation maintains the current satisfactory situation and provides legal certainty for stakeholders, while allowing the definitive VAT regime for intra-EU trade to enter into force on the basis of a reviewed set of rules for standard and reduced VAT rates. The proposed measure does not preclude a further revision of VAT legislation before 31 December 2017 to address the final arrangement of a definitive VAT regime for intra-Union trade.

  • DG {'url': 'http://ec.europa.eu/taxation_customs/index_en.htm', 'title': 'Taxation and Customs Union'}, MOSCOVICI Pierre

Documents

• Legislative proposal published: COM(2015)0646

Amendments

Dossier

8

2015/0296(CNS) 2016/03/04 ECON 8 amendments... Amendment 1 # Werner LANGEN Draft legislative resolution Paragraph 1 a (new) 1a. Regrets that the Commission published its proposal so late which means that the application of a minimum standard rate of VAT will be retroactive; Amendment 2 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point - 1 (new) Directive 2006/112/EC Article 1 – 414 Apply throughout the text (original Directive)Replace "Community" by "Union". Amendment 3 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point -1 a (new) Directive 2006/112/EC Article 80 – paragraph 1 – introductory part - 1a. In Article 80(1), the introductory part is replaced by the following: “1. In order to prevent tax evasion or avoidance, Member States mayshall in any of the following cases take measures to ensure that, in respect of the supply of goods or services involving family or other close personal ties, management, ownership, membership, financial or legal ties as defined by the Member State, the taxable amount is to be the open market value:” Amendment 4 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point - 1 b (new) Directive 2006/112/EC Article 80 – paragraph 2 2. Where Member States exercise the option provided for - 1b. In Article 80, paragraph 2 is replaced by the following: “2. In implementing paragraph 1, theyMember States may restrict the categories of suppliers or recipients to whom the measures shall apply.” Amendment 5 # Werner LANGEN Proposal for a directive Article 1 – point 1 Directive 2006/112/EC Article 97 From 1 January 2016 until 31 December 20217, the standard rate may not be lower than 15 %. Amendment 6 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point 1 Directive 2006/112/EC Article 97 From 1 January 2016 until 31 December 20178, the standard rate may not be lower than 15 %. Amendment 7 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point 1 Directive 2006/112/EC Article 97 From 1 January 2016 until 31 December 2017, the standard rate mayshall not be lower than 15 %. Amendment 8 # Ramón JÁUREGUI ATONDO, Jonás FERNÁNDEZ Proposal for a directive Article 1 – point 1 a (new) Directive 2006/112/EC Article 101 1a. Article 101 is replaced by the following: “By 30 June 200718 at the latest, and every three years thereafter, the Commission shall present to the European Parliament and the Council an overall assessment report on the impact of reduced rates applying to locally supplied services, including restaurant services, notably in terms of job creation, economic growth and the proper functioning of the internal market, based on a study carried out by an independent economic think-tank.” source: 578.670

History

(these mark the time of scraping, not the official date of the change)