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Reaction of Molly Scott Cato

European Commission VAT proposals


The European Commission has today published proposals on changes to VAT. Greens/EFA Molly Scott Cato comments:

"I am delighted that the European Commission has finally opened up national VAT exemptions to all SMEs, regardless of where the SMEs are registered. We want to make the single market genuinely inclusive and open to all businesses, irrespective of their size. To do that, we also need to reduce the burden on smaller businesses with simpler rules for invoicing or VAT returns. Setting a limit of €85,000, similar to that already in place in the UK, will enable smaller traders to sell across the EU while helping prevent abuse by large companies.

"The current VAT rules are an out-dated mess. We need to adopt a definitive regime so that VAT is always paid where the goods or services are consumed and at the VAT rate of that Member States."


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