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EU: Proposals for VAT rates, rules to help small businesses

EU: Proposals for VAT rates, help small businesses

The European Commission today proposed new rules to give EU Member States greater flexibility to set value added tax (VAT) rates and to create a better tax environment to help small and medium-sized enterprises (SMEs) flourish.


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Today's proposals are the final steps of the EC's overhaul of VAT rules, with the creation of a single EU VAT area. A goal is to address amounts lost to VAT fraud each year in the EU, while supporting business and securing government revenues. 

According to an EC release, the proposals are intended: (1) to satisfy demands from EU Member States for greater flexibility to set VAT rates; and (2) to extend VAT exemptions that exist for domestic companies to small companies trading cross-border.

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