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Version status: Published
Version date: 8 December 2022 - onwards

1. Context of the proposal

Reasons for and objectives of the proposal

Value added tax (VAT) is a major source of revenue in all EU Member States [Eurostat]. It is also a key source of financing for the EU budget since 0.3%of VAT collected at national level is transferred to the EU as own resources, representing 12% of the total EU budget. Despite the key importance of VAT in budgetary policymaking, the VAT system is hampered by sub- optimal VAT collection and control methods. It also imposes excessive burdens and compliance costs.