Home News News (Latest) Proposals re Financial and Insurance Services
Proposals re Financial and Insurance Services
Wednesday, 28 November 2007 00:00
The European Commission has adopted a proposal for a Directive and a Regulation aiming at modernising and simplifying the complex VAT rules for financial and insurance services.

These proposals need to be agreed unanimously by the Member States, after consultation of the European Parliament. Once approved by the Council of Ministers, the Directive needs to be transposed in national law while the regulation is directly applicable in all Member States.

The Commission state that the proposals should:


  • Increase legal certainty for all concerned, from the business sector to national tax administrations and therefore to reduce their administrative burden for correctly applying the VAT exemption for insurance and financial services. Legal certainty will secure the taxing rights of Member States and reduce opportunities for aggressive tax planning.
  • Ensure a more consistent application of the tax and to deliver a level playing field in the internal market, at least as far as VAT is concerned.
  • Allow businesses to manage better the impact of non-deductible VAT on their activities, whilst ensuring equal access to tax relief across the internal market.
Last Updated on Tuesday, 23 September 2008 14:15
 

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