EU backs away from harmonised VAT rate

The European Commission is expected this week to announce that it will not pursue a single VAT rate policy for the all 27 member states.

The latest proposals for the committee investigating reforms the European VAT system, Economic and Monetary Affairs Committee, are to be discussed by the European Parliament. It is understood that debate on imposing a single rate across the EU will not be raised. Instead, the committee will continue to focus on the problems of VAT fraud, believed to cost the European Union several billion each year in lost tax revenues.