EU To Extend Minimum 15 Percent VAT Rate
The European Commission has proposed that an EU law provision be extended to ensure that member states levy a headline VAT rate of at least 15 percent until December 31, 2017.
Article 97 of the EU VAT Directive provides that from January 1, 2011, to December 31, 2015, member states’ VAT rates must be not less than 15 percent.
The Commission has published a proposal for a Council Directive that would extend this period to December 31, 2017.
The Commission noted that, in 2016, it will publish an Action Plan for a simple, efficient, and fraud-proof definitive system of VAT tailored to the single market. This may allow states greater flexibility on setting VAT rates, it said.
Source: Tax-News – EU To Extend Minimum 15 Percent VAT Rate
