Eu works on the reform of Vat treatment of financial and insurance services are going ahead. The package of proposals, adopted by the Commission at the end of 2007, is aimed at modernising and simplifying the VAT rules for financial and insurance services and securing a level playing field in the pan-EU market for these services as far as VAT is concerned.
The proposal follows a three fold objective:
• to increase legal certainty, by means of a redefinition of the scope of the exempt services to ensure that the exemption better reflects the complexity and diversity of the modern industries. The proposal for a Directive is accompanied by a proposal for a Regulation which expands the definitions of exempt services and will apply directly in all Member States;
• to ensure a more consistent application of the tax and deliver a level playing field in the internal market, at least as far as VAT is concerned;
• to allow businesses to manage better the impact of non-deductible VAT on their activities.
Text of the proposal >>