***The Council agreed on a package of new VAT arrangements for services, reaching a compromise on provisions for telecoms, broadcasting and electronic services.
The arrangements involve a change in the place of taxation for VAT on services from the place where the supplier is located to that where the customer is situated, with a "one-stop" system enabling suppliers to fulfil a single set of obligations in their home member state, including for services provided in other member states. VAT revenue will be transferred from the supplier's home country to the other member states concerned.
The Council discussed reduced VAT rates, adopting conclusions on future work in this area and agreeing to the extension of temporary reduced rates in the Czech Republic, Cyprus, Malta, Poland and Slovenia.
The Council adopted conclusions dealing with:
annual multilateral surveillance in the context of the national economic reform programmes presented by the member states under the Lisbon strategy on growth and jobs;
the economic impact of migration;.
a review of the Lamfalussy regulatory process for financial services;
barriers to the development of European risk capital markets;
measures to combat tax fraud;
work on harmful competition with regard to business taxation.
It also reached agreement on a recast directive on capital duty.
UE
2007-12-05
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