2017/0349(CNS)

Common system of value added tax (VAT): minimum standard rate

Procedure completed

2017/0349(CNS) Common system of value added tax (VAT): minimum standard rate
RoleCommitteeRapporteurShadows
Lead ECON GUALTIERI Roberto (S&D) MARTUSCIELLO Fulvio (EPP), LOONES Sander (ECR), CORNILLET Thierry (ALDE), SCHIRDEWAN Martin (GUE/NGL), SCOTT CATO Molly (Verts/ALE)
Lead committee dossier: ECON/8/11895
Legal Basis TFEU TFEU 113
Subjects
Links

Activites

  • 2018/06/27 Final act published in Official Journal
  • #3626
  • 2018/06/22 Council Meeting
  • 2018/06/22 End of procedure in Parliament
  • 2018/06/22 Act adopted by Council after consultation of Parliament
  • 2018/04/19 Results of vote in Parliament
    • Results of vote in Parliament
    • T8-0177/2018 summary
  • 2018/03/28 Committee report tabled for plenary, 1st reading/single reading
    • A8-0124/2018 summary
    • ECON ECON/8/11895 GUALTIERI Roberto S&D
  • 2018/03/26 Vote in committee, 1st reading/single reading
  • 2018/01/18 Committee referral announced in Parliament, 1st reading/single reading
  • 2017/12/19 Legislative proposal published
    • COM(2017)0783 summary
    • DG {u'url': u'http://ec.europa.eu/info/departments/taxation-and-customs-union_en', u'title': u'Taxation and Customs Union'}, MOSCOVICI Pierre

Documents

History

(these mark the time of scraping, not the official date of the change)

2018-09-12
activities/0/docs/0/text added
  • PURPOSE: to ensure that all Member States apply a standard VAT rate of at least 15% permanently.

    PROPOSED ACT: Council Directive.

    ROLE OF THE EUROPEAN PARLIAMENT: the Council adopts the act after consulting the European Parliament but without being obliged to follow the opinion of the European Parliament.

    BACKGROUND: currently, Article 97 of Directive 2006/112/EC on the common system of value added tax (VAT Directive) provides that from 1 January 2016 until 31 December 2017, the standard rate may not be less than 15 %.

    In October 2017, the Commission adopted the first proposal introducing the definitive system for the taxation of trade between Member States8 and outlined successive steps and sub-steps for introducing this system in its follow-up to the VAT Action Plan. It also announced that it would propose a reform of VAT rates, which would be consistent with the definitive arrangements based on the destination principle that will gradually replace the current transitional arrangements.

    The Commission considers it appropriate to maintain the current minimum standard rate at 15%, also in a definitive VAT system based on the principle of taxation in the Member State of destination and to make it permanent. 

    Considering that all Member States currently apply a standard rate of at least 17%, the current arrangement for a minimum standard rate of 15% remains appropriate.

    CONTENT: the Commission proposes to make an existing temporary provision definitive (Article 97 of the VAT Directive). The proposal aims to prevent that the minimum of 15% for the standard rate expires on 1 January 2018 and ensures that all Member States apply a standard rate of a minimum of 15% on a permanent basis.

    The Commission will continue to monitor that Member States respect the minimum of 15% for the standard VAT rate.

activities/1 added
date
2018-01-18
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EP
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Committee referral announced in Parliament, 1st reading/single reading
committees
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    ECON
    date
    2018-01-23
    committee_full
    Economic and Monetary Affairs
    rapporteur
    • group
      S&D
      name
      GUALTIERI Roberto
activities/2 added
date
2018-03-26
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EP
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Vote in committee, 1st reading/single reading
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    EP
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    date
    2018-01-23
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      GUALTIERI Roberto
activities/3 added
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EP
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  • url
    http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2018-0124&language=EN
    text
    • The Committee on Economic and Monetary Affairs adopted, following Parliament’s consultation procedure, the report by Roberto GULATIERI (S&D, IT) on the proposal for a Council directive amending Directive 2006/112/EC on the common system of value added tax, with regard to the obligation to respect a minimum standard rate.

      The committee recommended that the European Parliament approve the Commission's proposal without making any amendments.

      As a reminder, the proposal aims to prevent the 15% minimum level applicable to the standard rate of VAT from expiring on 1 January 2018 and to ensure that all Member States apply a standard rate of 15% as a minimum on a permanent basis.

      As the explanatory memorandum accompanying the report recalls, the minimum of 15% for the standard VAT rate has been prolonged six times since the Council agreed in 1992 on rules limiting the discretion of Member States to set VAT rates, requiring Member States to apply this minimum standard rate over a certain period.

      While noting that the proposal has been submitted at the last moment, the rapporteur welcomes the fact that the proposal will permanently set an agreed limit that ensures the proper functioning of the internal market whilst leaving flexibility for Member States in setting the standard VAT rate, instead of numerous last-minute prolongations of a temporary minimum rate.

    type
    Committee report tabled for plenary, 1st reading/single reading
    title
    A8-0124/2018
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Committee report tabled for plenary, 1st reading/single reading
committees
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    True
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    date
    2018-01-23
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    Economic and Monetary Affairs
    rapporteur
    • group
      S&D
      name
      GUALTIERI Roberto
date
2018-03-28
activities/4 added
date
2018-04-19
docs
body
EP
type
Results of vote in Parliament
activities/5 added
date
2018-06-22
body
CSL
type
Council Meeting
council
Economic and Financial Affairs ECOFIN
meeting_id
3626
activities/6 added
date
2018-06-22
body
EP
type
End of procedure in Parliament
activities/7 added
date
2018-06-22
body
EP/CSL
type
Act adopted by Council after consultation of Parliament
activities/8 added
date
2018-06-27
type
Final act published in Official Journal
committees/0/date added 2018-01-23
committees/0/rapporteur added
  • group
    S&D
    name
    GUALTIERI Roberto
committees/0/shadows added
  • group
    EPP
    name
    MARTUSCIELLO Fulvio
  • group
    ECR
    name
    LOONES Sander
  • group
    ALDE
    name
    CORNILLET Thierry
  • group
    GUE/NGL
    name
    SCHIRDEWAN Martin
  • group
    Verts/ALE
    name
    SCOTT CATO Molly
procedure/Modified legal basis added Rules of Procedure EP 150
procedure/dossier_of_the_committee added ECON/8/11895
procedure/stage_reached changed
Old
Preparatory phase in Parliament
New
Procedure completed
2018-01-11
2018-01-09
2018-01-08
2018-01-06

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