The VAT system in Europe has reached a breaking point. It is time for a change, say S&D Euro MPs
S&D Euro MPs today welcome the European Commission's action plan to change the VAT rules in order to eradicate € 50 billion of annual cross-border fraud that equals nearly half of the EU's own budget. The revenues that would be recovered could be reinvested in growth and job creation.
S&D Euro MP Tibor Szanyi, who will negotiate the proposal on behalf of the S&D Group, said:
"We welcome the VAT action plan proposed by the Commission. It will take time to change the rules but the current system has reached a breaking point. The rules introduced years ago were only supposed to be temporary. They have generated cross-border fraud which represents €50 billion losses in revenues annually for the member states.
"The proposals are in line with the Socialists and Democrats strategy to fight tax fraud and tax avoidance. The Commission has finally set up a definitive regime where we change the place of supply in order to combat VAT fraud, especially in the agri-food sector."