How we work:
|Our work is based on evidence from independent research into the effect of VAT on NGOs in the EU as well as on our members’ experiences and feedback||Since 1992, ECCVAT has lobbied and worked with the Commission, MEPs and EU officials, provided information to various consultations and participated in many conferences||We monitor EU legislation, inform our members of any relevant development and take appropriate action whenever needed|
ECCVAT is also an observer of the European Commission’s VAT Expert Group which gives us an exclusive position to raise our issues and reflects more that 20 years of maintaining good relations with the European institutions.
Current Focus Areas
Future of VAT
1 December 2010: The Commission adopted a Green Paper on the Future of VAT which opened a six-month consultation. ECCVAT seized that opportunity to highlight the detrimental impact of the VAT system on the work of NGOs.
6 December 2011: Following the consultation, the Commission adopted a Communication on the Future of VAT, which outlined the general direction of EU taxation policy for the coming years. It set three goals to reform the current EU VAT system:
- VAT should be made more transparent and more business-friendly
- Reduced rates and exemptions should be reviewed
- New anti-fraud mechanisms to fight revenue losses should be set up
Following an intensive ECCVAT campaign, the Communication included the first-ever recognition of the VAT problem for NGOs.
VAT Treatment of Public Bodies
2010: The European Commission commissioned a study on “VAT in the public sector and exemption in the public interest” to the consultancy firm Copenhagen Economics. The Commission asked Copenhagen Economics to consider three options for the VAT treatment of public bodies:
- Full taxation option in its alternative that a liability to tax requires supplies against consideration
- Refund system
- The option according to which the special rules relating to public bodies (Article 13 of the VAT Directive) would be deleted, while keeping tax exemptions in the public interest.
1 March 2011: Copenhagen Economics' report VAT in the public sector and exemption in the public interest was published.
2012: The Commission asked Copenhagen Ecconomics to conduct additional work to the study on "VAT in the public sector and exemption in the public interest”.
11 January 2013: Copenhagen Economics' extended second report on VAT in the public sector and exemption in the public interest was published.
17-19 April 2013: Follow-up conference in Mestre, Italy (Fiscalis Seminar 2013). ECCVAT was invited to speak on The challenges of the current VAT system for NGOs.
14 October 2013 – 25 April 2014: Commission consultation Review of existing VAT legislation on public bodies and tax exemptions in the public interest
April 2014: ECCVAT's response to Review of existing VAT legislation on public bodies and tax exemptions in the public interest
December 2014: Commission publishes summary report of the outcome of the public consultation
Reduced rates consultation
May 2011: European Commission Green Paper - On the future of VAT: Towards a simpler, more robust and efficient VAT system
8 October 2012 - 4 January 2013: The period for the Public Consultation on Review of Existing Legislation on VAT Reduced Rates.
April 2013: The Commission published a summary report of the outcome of the public consultation
Action Plan to Combat Tax Fraud and Tax Evasion
December 2012: the Commission adopted an Action Plan to strengthen the fight against tax fraud and tax evasion and published two recommendations to protect Member States' tax revenues against aggressive tax planning as well as tax havens and unfair competition.