BM 62 – Resolution on the reform of the VAT system in Europe

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The European Commission is reforming the VAT system in Europe. This is being done because the system we have today no longer fits the European economic system. The first of December 2010 the European Commission adopted a Green Paper The future of VAT– Towards a simpler, more robust and efficient VAT system. In the public consultation the European Commission received 1700 contributions from citizens, academic, NGO’s and many others.

The suggested reform is changing the whole VAT system in Europe and will result in a harder climate for organizations in Europe. Among many other things the European Commission wants to harmonize the system in Europe and abolish the member states possibilities to have exceptions from this system for example for NGO’s. This is because the European Commission is of the belief that NGO’s compete with small businesses on the market.
This attitude in the European Commission is putting its citizen’s opportunities to be an active part of the society at risk and will bring devastating consequences in some member countries such as Sweden and Finland. The student movement is dependent on this system and their economic situations will worsen due to this or in worst case be completely devastated. Civil society and Higher Education in Europe will be severely affected and the changes risk increasing already existing animosity for the European Union amount its citizens.

The European Students’ Union is of the belief that the student movement is crucial for the Higher Education in Europe and that the European Commission shouldn’t be the ones deciding who is competing with whom on the market. Therefore the European Students’ Union calls upon the European Commission to change their attitude in this issue and listen to those who are the experts on the matter. The European Commission must allow the member states to also in the future decide if they want to have exceptions from the rules and what is best for the citizens in their respective countries.

This sets out the fundamental characteristics that must underlie the new VAT regime, and priority actions needed to create a simpler, more efficient and more robust VAT system in the EU.


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