The EU is carrying out a big reform of its VAT system, in place since 1993. The VAT system is a major part of Europe's economy, raising in 2014 almost a trillion Euros or about 7% of EU GDP.
German European People's Party MEP Werner Langen is going to answer a few questions about the EU Commission's future reform of VAT system.
Mr. Langen, what are you trying to achieve with this new legislation?
The first goal is finding a definitive VAT system because for the last 23 years we have only had a transitional system. The second and the most important goal is fighting VAT fraud.
What have been the biggest obstacles during the course of this legislation?
The biggest obstacle is that, when it comes to tax issues, we require a unanimous decision by all member states.
The Commission has announced concrete legislative proposals by the end of the year.
The EU currently receives a proportion of VAT revenue, reducing fraud would automatically increase this amount. The issue of own EU resources is being discussed by others. We are currently debating the financial capacity of the Eurozone.
Credit to Europarl TV