Emerging conversations: Global industrial products tax alert

On December 1, 2010, the EC issued a “Green Paper on the future of EU VAT – Towards a simpler, more robust and efficient VAT system” (the Green Paper), to interested parties (e.g., businesses, public authorities, tax practitioners, and tax academics).

This Green Paper provides a once-in-a-lifetime opportunity for Industrial Products companies to submit comments to help shape future reforms. The EC has requested views by May 31, 2011 on how to make the European VAT system simpler, more robust, and efficient.

In the Green Paper, the EC explains various reasons why a debate relating to the current European Union VAT system should occur now. These include:

  • the EU VAT system is too complicated
  • there are too many special rules and exemptions
  • the so-called VAT gap attributable to fraud is too large
  • the existing collection model is not up-to-date from a technological standpoint.

The impact of this public debate could mean fundamental changes to the EU VAT system that multinational taxpayers in all industrial products industries would need to address.

Download the publication to read our perspectives in more detail, or contact us if you would like to discuss submitting a response to the Green Paper.