Finland Wary About EU VAT Rate Reforms

The Finnish Government has said that while it supports the general objectives of the European Commission’s proposals on EU VAT rates, the plan’s details should be subjected to further examination according to a statement released by the Finnish Ministry of Finance on 1st March 2018, Finland is in favor of bringing the rules on VAT rates up to date. However, it warns that a more flexible position on reduced rates must not impede the functioning of the single market and increase the VAT compliance burden. Under plans unveiled by the EC in January 2018, member states would be given greater powers to vary VAT rates and to relax VAT rules for small businesses. The proposals are part of a broader overhaul of the EU’s VAT system, which aims at the creation of a single VAT area.