On 7 April 2016, the European Commission adopted a Communication on an Action Plan on VAT, which sets out the first steps the Commission intends to take with the aim of creating a single  EU VAT area. This follows the “Roadmap” that the Commission published in January 2016 (details of which were reported in our February 2016 newsletter).

The Action Plan sets out a timeline of the different actions the Commission intends to take. The intention is to create a simple, efficient and fraud-proof definitive system of VAT tailored to the single market. This includes plans to simplify VAT rules for e-commerce, short term measures to tackle VAT fraud and updates to the framework for VAT rates.

The Commission will now ask the European Parliament and the Council, supported by the European and Economic and Social Committee, to provide clear political guidance on the options put forward in its Action Plan and to confirm their support for the proposed reforms.

Details of the Action Plan are available to view here.