On 12 June 2014, the EU VAT Expert Group published its opinion that a definitive VAT regime is urgently needed to replace the current transitional VAT system and achieve a true single market in the EU. The transitional VAT system was originally put in place in 1993, and was initially meant to last just four years.
The published opinion highlights several shortcoming of the current transition VAT system that impede the single market and growth in Europe overall.
According to the Expert VAT Group, in order to achieve a successful definitive VAT system, it must be based on the following four principles:
The group calls for all stakeholders, including the European Commission, Council and Parliament, and all EU Member States to come to agreement with an implementation plan for a definitive VAT system by 2019.