C 342/92
EN
Official Journal of the European Union
6.9.2022
Wednesday 16 February 2022
K. whereas Opinion No 11/2020 of the Court of Auditors focuses on the new method put forward for calculating the VAT-based own resource; whereas this opinion states that the proposal ‘significantly simplifies the calculation of the Member States’ VAT-based own resource as compared to the current system’ but ‘identified the risk that the definitive multiannual Weighted Average Rate may not be representative for all Member States’; L. whereas the socio-economic crisis caused by the COVID-19 pandemic has required substantial fiscal and budgetary efforts from the Member States’ governments, including in the form of aid to businesses; M. whereas the VAT-based own resource accounted for 11 % of the EU budget in 2019, for a total amount of EUR 17,8 billion; N. whereas the Commission’s ‘action plan for fair and simple taxation supporting the recovery’ is part of the EU’s new strategy for simplifying and adapting taxation to the digitalisation of the economy and the green transition, and for combating tax fraud and evasion; whereas this action plan identifies matters related to VAT as priorities, focusing on the fight against VAT fraud and the modernisation of VAT on financial services, taking into account the digitalisation of the economy; O. whereas, since the adoption of the VAT Directive, financial services have been, with certain exceptions, exempt from VAT on the grounds that they are subject to other taxes (such as tax on insurance premiums); P. whereas VAT, as an indirect tax collected by all 27 Member States, is collected under several different national regimes, and whereas it is possible to identify good practices from all of them and apply them to an EU-wide reform; whereas national examples should be considered as models to take into account and whereas the Commission must act as a platform to exchange such good practices; whereas the national legislative changes introduced by one Member State, creating incentives for consumers to request invoices in hard-to-tax sectors, are one such good example; Q. whereas the general objective of digitalising taxation is key to ensuring transparency, simplicity, accountability and automated reporting, and is essential for a definitive, simplified and future-proof VAT regime; whereas the COVID-19 pandemic has been a catalyst for the development of digitalisation for all transactions; whereas small and medium-sized enterprises (SMEs) are at the centre of this digitalisation process and should be supported in this respect in acquiring the latest technology and know-how; R. whereas VAT is broadly harmonised at EU level and is an own resource for the EU budget, and thus requires extensive cooperation at EU level; S. whereas Parliament fully respects the principle of national tax sovereignty;
Tax rates, tax bases and VAT gaps in Member States 1.
Welcomes the fact that the overall trend is positive, with the VAT gap falling to 10 % in 2019 from 20 % in 2009 in the Member States, which suggests that VAT fraud in the EU is in decline and VAT revenue as a proportion of gross domestic product is on the rise; 2.
Calls on the Commission and the Member States to analyse and exchange the best practices in those Member States that have succeeded in avoiding a large VAT gap; supports the goal of coming up with innovative tax solutions in line with new economic, social and environmental realities; 3.
Notes that according to some estimates, a revenue-neutral tax reform could reduce the standard VAT rate on average by seven percentage points in the EU-27, in addition to reducing compliance costs; highlights the fact that according to those estimates, the size of the reduction varies between EU Member States, from 2 (Estonia) to 13 (Greece) percentage points; notes that this is not the only answer to the need to tackle the complexity of the tax system; observes that a lower standard VAT rate could benefit consumers, in particular low-income households; notes that the Member States have the possibility to explore what benefits a single reduced standard rate would have for fair competition in their market;