Common system of value added tax and duration of obligation to respect a minimum standard rate * European Parliament legislative resolution of 23 November 2010 on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax, with regard to the duration of the obligation to respect a minimum standard rate (COM(2010)0331 – C7-0173/2010 – 2010/0179(CNS))
Date: 2010-11-23
Institutions: Committee on Economic and Monetary Affairs, European Parliament
Subjects: VAT rate, basis of tax assessment, single market, small and medium-sized enterprises, tax evasion, tax harmonisation








CE2012099EN.01015201.xml










3.4.2012   


EN


Official Journal of the European Union


CE 99/152





Tuesday 23 November 2010Common system of value added tax and duration of obligation to respect a minimum standard rate *
P7_TA(2010)0417
European Parliament legislative resolution of 23 November 2010 on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax, with regard to the duration of the obligation to respect a minimum standard rate (COM(2010)0331 – C7-0173/2010 – 2010/0179(CNS))
2012/C 99 E/40
(Special legislative procedure – consultation)

The European Parliament,






—


having regard to the Commission proposal to the Council (COM(2010)0331),










—


having regard to Article 113 of the Treaty on the Functioning of the European Union pursuant to which the Council consulted Parliament (C7-0173/2010),










—


having regard to Rule 55 of its Rules of Procedure,










—


having regard to the report of the Committee on Economic and Monetary Affairs (A7-0325/2010),










1.


Approves the Commission proposal as amended;










2.


Calls on the Commission to alter its proposal accordingly, in accordance with Article 293(2) of the Treaty on the Functioning of the European Union;










3.


Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;










4.


Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;










5.


Instructs its President to forward its position to the Council, the Commission and the national parliaments.










TEXT PROPOSED BY THE COMMISSION


AMENDMENT





Amendment 1






Proposal for a directive – amending act


Recital 4











(4)


Pending the outcome of consultations on a new VAT strategy which is expected to address future arrangements and corresponding levels of harmonisation, it would be premature to set a permanent standard rate level or to consider changing the minimum rate level.












(4)


Pending the outcome of consultations on a new VAT strategy which is expected to address future arrangements and corresponding levels of harmonisation, it would be premature to set a permanent standard rate level or to consider changing the minimum rate level. 
The focus of the new VAT strategy should be to reform the VAT rules in a manner that actively promotes the objectives of the internal market
. 
The new VAT strategy should aim at reducing administrative burdens, removing tax obstacles and improving the business environment, particularly for small and medium-sized and labour-intensive enterprises, whilst ensuring the robustness of the system against fraud.











Amendment 2






Proposal for a directive – amending act


Recital 5











(5)


It is therefore appropriate to maintain the current minimum standard rate at 15 % for a further period long enough to ensure legal certainty, while allowing further review.












(5)


It is therefore appropriate to maintain the current minimum standard rate at 15 % for a further period long enough to ensure legal certainty, while allowing further review
, using the Single Market Strategy as a guideline in this respect
.









Amendment 3






Proposal for a directive – amending act


Recital 6











(6)


This does not preclude a further revision of VAT legislation before 31 December 2015 to address the outcome of the new VAT strategy.












(6)


This does not preclude a further revision of VAT legislation before 31 December 2015 to address the outcome of the new VAT strategy. 
There should, if possible, be a move towards a definitive system before 31 December 2015.











Amendment 4






Proposal for a directive – amending act


Article 1 a (new)





 



Article 1a


Review



1.
   
By 31 December 2013, the Commission shall submit legislative proposals to replace the current transitional minimum VAT rate level with a definitive system.




2.
   
For the purpose of implementing paragraph 1, the Commission shall hold extensive consultations with all stakeholders, public and private, on the new VAT strategy. Those consultations shall at least address VAT rates, including reduced VAT rates, as well as the desirability of setting a maximum VAT rate, the scope of VAT, the derogations from the system, the alternative options for the structure and functioning of VAT, including the place of taxation for intra-Union supplies. The Commission shall report to the European Parliament and the Council on the outcome of those consultations.