Considerations on COM(2017)783 - Amendment of the VAT Directive, with regard to the obligation to respect a minimum standard rate

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dossier COM(2017)783 - Amendment of the VAT Directive, with regard to the obligation to respect a minimum standard rate.
document COM(2017)783 EN
date June 22, 2018
 
table>(1)Article 97 of Council Directive 2006/112/EC (3) provides that, from 1 January 2016 until 31 December 2017, the standard rate may not be lower than 15 %.
(2)The application of a standard rate of value added tax (VAT) ensures the smooth functioning of the common system of VAT and should therefore be kept in place.

(3)It is appropriate to maintain the current minimum standard rate at 15 %, and to make it permanent.

(4)Since the objective of this Directive, namely to set a minimum standard rate of VAT, cannot be sufficiently achieved by the Member States, but can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Directive does not go beyond what is necessary in order to achieve that objective.

(5)Directive 2006/112/EC should therefore be amended accordingly,