Press Release

Leaking VAT system must be fixed

Strasbourg
, 16.05.2017 - 12:50
Man reaching into empty pocket

The leaking VAT system must be quickly and efficiently fixed, says Julia Pitera MEP, Rapporteur on the 2015 report on the 'Protection of the EU's financial interests - fight against fraud' that was voted today at the European Parliament.

In 2014, 159.5 billion euros of expected VAT revenues were not collected. This is almost the amount of the whole EU budget. Nearly one third of this sum, 50 billion euros, disappeared in carousel frauds - the type of fraud in which VAT and goods are passed around between companies and jurisdictions.

“It is clear that the problems related to cross-border VAT fraud need strong, coordinated and speedy measures,” says Julia Pitera.

“The Commission must speed up its procedures and come up with solutions in order to avoid the loss of tax revenue in the EU and in the Member States. As time is money, it is regrettable that the Commission has postponed the publication of its measures to strengthen the capacity of tax administrations.”

“The implementation of short-term measures to tackle losses on VAT should also not delay the Commission’s proposal for a definitive VAT system as provided for in its action plan,” she highlighted.

The 'PIF' report on the Protection of Financial Interests is an annual report which assesses if EU money has been well managed, for both expenditure and revenue. In her report Mrs Pitera also calls on the Commission to continue its effort in simplifying EU legislation, in order to reduce the administrative burden and cost-related spending, to encourage beneficiaries by easier access to funds and to better recognise fraudulent attempts from simple irregularities.

Note to Editors
The EPP Group is the largest political group in the European Parliament with 216 Members from 27 Member States

MEP Contacts

-
Julia PITERA
STR - Phone: +33 (0)3 88 175386 Fax: +33 (0)3 88 179386
Email: julia.pitera@europarl.europa.eu

Press Contacts

Pete Pakarinen
Head of Publications, Press Officer on Budget and Structural Policies Working Group, Budgetary Control, Agriculture and Rural Development and Finnish Media, Communication
Phone: +32 470 830 213

Latest

Zimbabweans Await Election Results Following General Election
01.08.2018 - 15:12

Zimbabwe elections: unlevel playing field and lack of trust

Improved political climate, inclusive participation rights and a peaceful vote, but unlevel playing field, intimidation of voters and lack of trust...
#UksLastSummer
16.07.2018 - 18:15

UKsLastSummer

The summer holidays have started! Which EU country are you going to visit this summer? Did you know that your holidays may be less hassle...
Ensuring that consumers have the same quality of product across the EU
12.07.2018 - 12:00

Ensuring that consumers have the same quality of product across the EU

Last year, it emerged that there were differences in the quality of food and non-food products being sold in different EU countries between, for...
Back lit money bags with euro symbol in vault
12.07.2018 - 10:37

EPP Group wants independent Monetary Fund under Union law

The EPP Group wants the planned European Monetary Fund (EMF) to be independent and integrated into Union law. "The European Stability...

Highlights of the week

09.07.2018 - 13.07.2018
Cloud computing security

More muscle to combat threats to our networks

As threats to our vital networks and information structures are rising, we need to strengthen our ability to prevent, detect and respond to problems...
Happy family with child and shopping bags in city

Better work-life balance for parents and carers

On Wednesday afternoon, the Employment and Social Affairs Committee will vote on the legislative draft Report establishing a better work-life balance...
Human Hand Holding The New Apple Tv Siri Remote

New audiovisual media rules

Members of the Culture and Education Committee will endorse the political agreement reached on the reform of the EU legislation on Audiovisual Media...
Sirpa Pietikäinen MEP