The European Commission has proposed a modification of the rules on value added tax (VAT) and the reform of EU rules on excise duties on alcohol, the EU commission said on Friday.
The VAT package will facilitate the operation of EU companies and put an end to the “transitional” VAT regime for 25 years in the single market.
As it is said, the creation of a definitive VAT system will have to adjust nearly 200 articles of Article 408 of the EU VAT Law to enable businesses and public finances to benefit from a simplified taxation of goods, a one-stop shop for dealers, and the benefits of reducing bureaucracy.
Furthermore, the proposal clarifies that, as a rule, the seller must charge the VAT payable on the sale of the goods to customers in another EU country, in accordance with the tax rate of the Member State of destination. This committee says “dramatically” will reduce the rate of VAT fraud.
The proposal to amend the EU regulation on excise duty on alcohol is aimed at reducing the costs of smaller businesses and contributes to a more effective protection of consumers’ health.
According to the initiative, craft and small farmers – for the first time, including small independent apple cakes – will be given access to a new EU-wide certification system that will allow them to sell their products at lower levels throughout the EU.
In order to protect the health of consumers, a new measure would be introduced that would prevent the unlawful use of the denatured alcohol tax exempted for the production of counterfeit drinks.
In addition, the preferential tax rate for lower alcoholic beers will increase from 2.8% to 3.5%.