Consultation Paper on modernising Value Added Tax obligations for financial services and insurances, March 2006

The European Commission has launched an online consultation for views from the public and business on reforming Community legislation on VAT and Financial Services.

The consultation is based on this paper which seeks views on the current legal framework as set out in the Sixth VAT Directive (Directive 77/388/EEC), and options for change. It explains why there is a need to review Community legislation in this area. In particular, it looks at why there is a need to ensure that it reflects the world as it is today, taking account of the changes that have occurred in the intervening 30 years.

This paper is of interest to stakeholders in the financial services industry, including insurance, their professional advisors and indeed to consumers of these services generally.

The purpose of consulting the public on this issue is to provide input to the discussion, gather relevant feedback and assist Commission services in developing their thinking on the subject.

The consultation is based on the document 'Consultation Paper on modernising Value Added Tax obligations for financial services and insurance '. This document does not necessarily reflect the views of the Commission nor does it mean that the Commission is committed to any official initiative in this area.

Comments are invited on this paper by 9 June 2006 at the latest.