EU to lower VAT?
The European Commission may ease on its stance regarding VAT. Decrease in minimal product and service taxes may have a beneficial effect on consumption, and fights black economy as well.
A French proposition would decrease VAT payable at restaurants from the obligatory minimum of 19.6% to 5.5%, but changes in tax regulations can only be passed if approved by all member states. According to Le Monde\'s information the European Commission is open to discuss a study published by independent organization Copenhagen Economics. In their research, they investigated the relation of decreasing taxes and job creation. In some, “well-chosen” industries this move is predicted to be successful. There is talk about creating three VAT categories: nearly 0% for basic products and services, a 10-12% rate for certain selected services (such as restaurants), and a normal rate for everything else.
Presently VAT in EU varies from 15% to 25%, with a limited scope of special products and services enjoying reduced rates (minimum 5%). This group of products and services were compiled in 1992, and include 18 items. Differences in the tax systems of member states are being gradually eliminated. (Gazdasági Rádió)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.