Press Release: VAT: Commission reviews and updates strategy for improving the operation of the EU VAT system

The European Commission released on 24 October 2003 a follow-up report ('Review and update of VAT strategy priorities') concerning the programme for the improvement of the VAT system that was adopted in 2000. In the report, the Commission reviews progress with proposals already made, lists forthcoming VAT proposals and presents its ideas for a VAT system that would be suitable for an Internal Market consisting of 25 Member States. In particular, the Commission announces its intention of promoting the idea of a one-stop shop system, whereby a trader could fulfil all his obligations for his EU-wide activities solely in the Member State in which he is established. The Commission suggests that taxation at the place of destination may become increasingly necessary, particularly for services, in order to prevent distortions of competition and in order to ensure that VAT continues to accrue to the Member State where consumption takes place. Finally, the Communication emphasises the need for continuing work on ways of eliminating the growing problem of carousel fraud.

• Primary Source

European Commission: COM(2003)614 final. Follow the progress of this document through Prelex http://ec.europa.eu/prelex/detail_dossier.cfm?CL=en&ReqId=0&DocType=COM&DocYear=2003&DocNum=614

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