B2RLaw develops recommendations for future EU VAT changes

The 38th plenary meeting of the VAT Expert Group (VEG) began a few hours ago in Brussels. During today’s meeting, the members of the VEG will present a report to the European Commission containing recommendations for future changes to the VAT Directive. One of the experts representing the Polish tax advisory firm is Jan Sarnowski, Head of the Tax Department at B2RLaw.

The report covers both the issues that need to be resolved here and now, as well as the general directions of development of the European VAT system. Its main principle is the simplification of VAT throughout the EU. It also poses a number of questions for the European Commission to answer:

+ How to reduce the number of VAT rates and reduce the differences between particular VAT systems without limiting the sovereignty of Member States?

+ Is it possible to reduce the number of VAT exemptions and special regimes without leading to worsening the situation of the industries currently using them?

+ Can VAT stop being a tool to support various public policies? Is it possible to clear VAT from preferences regarding activities beneficial to society, the economy or the environment? How to transfer them to other taxes or to grant systems without reducing their effectiveness?

+ How should VAT meet the criteria of sustainable development? Should it contain preferences that reinforce combating the climate crisis? Should it rather be more fiscally effective, easy to settle and neutral towards economic phenomena, leaving the fulfillment of sustainable development to public spending?

European VAT is at a crossroads, and improving its quality requires decisions at the European level. We are glad that Poland, represented by B2R, can be at the centre of this debate – asking questions and recommending solutions beneficial to the European economy!

The VAT Expert Group (VEG) is a group that assists and advises the European Commission on VAT matters, in particular on the preparation of new legislative acts and other policy initiatives, as well as on the practical implementation of VAT legislation. The VEG currently consists of 40 experts: 7 individuals and representatives of 33 organisations. B2R Law is one of the two Polish organisations selected by the Commission to represent the Polish tax advisory profession in the VAT Expert Group.