The European Commission has launched a consultation on the future of VAT in the State sector and exemptions for public benefit. With increased privatisation across Europe the 1970s-style divide still at the heart of VAT between broadly non-taxed public and taxed private sector may not be relevant to the 21st century. A number of options are under consideration and the EU invites responses. The consultation “Review of existing VAT legislation on public bodies and tax exemptions in the public interest” runs until 14th February 2014.
Tax Barrister, Accountant