Common system of value added tax (VAT): standard VAT return

The Committee on Economic and Monetary Affairs adopted, in the framework of a special legislative procedure (Parliament consultation) the report by Ivo STREJČEK (ECR, CZ) on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax as regards a standard VAT return.

The committee approved the Commission proposal subject to amendments.

Members:

• highlighted that the use of standardised returns should facilitate both the collection and payment of VAT and the control of VAT returns by the Member States tax authorities and should also contribute to helping businesses comply with VAT legislation, thus reducing the error rate, and ultimately contributing towards a reduction or even elimination of VAT fraud and the VAT gap;
• stressed that the standard VAT return will only fulfil its full potential if the Member States fully transpose this Directive, in a timely manner, into their national laws, regulations and administrative provisions, without deviating from its scope;
• suggested that Member State tax authorities should provide their officials and taxable persons with online tutorials on the appropriate use of electronic filing to ensure that submission of the standard VAT return is conducted in an appropriate and secure manner.

In order to further reduce burdens on business and improve the functioning of the internal market, the information requirements in the standard VAT return should become unified in all Member States, and the Commission should, within five years of the date of entry into force of this Directive, evaluate the implementation of this Directive from that point of view and make proposals if appropriate.

The results of the review shall be communicated to the European Parliament and to the Council accompanied, where necessary, by appropriate legislative proposals.