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EU proposes European VAT from 2014

  • Jun 24, 2011 | Richard Asquith

EU proposes European VAT from 2014

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.