Vol. 471 No. 1
28 Dr. O'Hanlon asked the Minister for Finance the proposals, if any, that have been made for a uniform rate of VAT throughout the European Union; his policy regarding these proposals; and if he will make a statement on the matter. [16761/96]
The European Commission has made no proposals for a uniform rate of VAT to be applied throughout the European Union.
The position is that the European Commission has recently produced a paper entitled "A common system of VAT — a programme for the single market" (Com (96) 328 of 22 July, 1996). The paper gives a general outline of the Commission's ideas regarding a common system of VAT together with a timetable detailing proposals, with might lead to the adoption of such a system, that the Commission plan to make over the coming three years. The main recommendations contained within the paper are a single place of registration for traders for all taxable transactions in the EU, the determination of revenues due to each member state by statistical calculation of the taxed consumption on its territory and the approximation of rates to a considerably greater degree than at present. The Commission has indicated in this paper that, in its view, under the system envisaged, a single standard rate of VAT within the Union would be ideal for the purpose of avoiding tax-based distortions of competition but that an approximation within a band could prove sufficient.
The Government will consider the Commission's detailed proposals on the VAT system, when they emerge, on their merits and having regard to the national interest. All fiscal measures require unanimity at Council for their adoption.
