Austrian Presidency had put forwarded an "amended approach based on giving the committee decision-making powers but only on a more tightly selected set of provisions" and including "a 'safety stage' permitting a Member State to keep out from qualified majority voting any measures it considers might have serious budgetary implications". Though the majority of the member’s state agreed on the qualified majority voting, the Government has opposed the proposal again and again on the basis that it can involve necessary accompaniment or consequence to decisions affecting the United Kingdom revenues or interests being taken by qualified majority voting.
However, the Government sustains the endeavor for making the VAT committee a more effective body and trying to put some administrative modifications in the committee's functioning process.
The European Commission is in a position to implement some proposals which may synchronize Community rules regarding value-added tax (VAT) grouping schemes and make a concentrated effort further on tax evasion.
Current European Union VAT legislation provides organizational overview for member states, to consider as one single taxable person those who, while lawfully independent, are intimately bound to one another by financial, economic and organizational links. The communication adopted by the EC on July 2 consists of the guidelines that ensure a "correct, rational and standardized" application of the VAT grouping option.
László Kovács, EU Tax Commissioner responsible said: "The practice has shown that the VAT grouping scheme, although being a simplification measure for operators, could lead to tax evasion. For that reason the Commission proposes clear guidelines on how to apply in practice this scheme."
Since 1970s the VAT grouping option are accessible to member states and 16 member states have commenced VAT grouping schemes into their national legislation. However, there are lots of deviations among the schemes put into practice by member states, and the EC’s proposals will make an endeavor to synchronize the system a little.
As per view of the commission, the proposals make an effort to revise Article 11 of the EU VAT Directive at the same time as respecting the basic principles of the Community VAT system and ensuring that the outcomes of using the option scheme remain restricted to the member state applying it.