EU proposes European VAT from 2014
- 25 June 2011 | Richard Asquith
The European Commission yesterday proposed a new VAT, or Sales Tax, to be levied on all consumption across the 27 member states.
The EC wants this new tax to be charged on top of the existing national VAT charge, to be collected and administered by state tax authorities. It was suggested that the new tax start from 2014, as part of the next seven year budget cycle.
Previous attempts to allow the European Union to raise taxes directly have been rejected by countries. Any agreement to the above proposals would require the approval of all member states and the EU Parliament. The detailed plans indicate that there will be no new tax. Instead, the EC wishes to have paid directly to it components of the total VAT take which are already put aside for it. This includes reduced rate items.