New EU VAT legislation for service packages, effective since 1 January this year, has been causing a good deal of confusion within the exhibition industry. The EU member states have taken different positions on the interpretation of the new rules and the aim of harmonizing the VAT national regulations has not been achieved.
UFI participated in an EU VAT conference and organized a meeting with the EU Directorate General of Texation & Customs Union in Brussels. We consulted UFI members on their respective situation and challenges with the newly implemented rules. Based on this information UFI submitted a contribution to the EU VAT Green Paper. The Green Paper was initiated by the EU commission in order to “to launch a broad based debate with all the stakeholders on the evaluation of the current VAT system and the possible ways forward to strengthening its coherence with the single market and its capacity as a revenue raiser whilst reducing the cost of compliance. The Green Paper covers in particular the treatment of cross border supplies, as well as other key issues addressing tax neutrality, the degree of harmonization required in the single market and reducing "red tape" whilst ensuring VAT revenues for Member States” (EU Commission).
Based on VAT Green Paper the EU commission will develop together with the VAT committee a White Paper which serves as starting point for the future VAT legislation in the EU.
You can find UFI´s contribution to the green paper here.
Those interested may wish to consult a green paper on the future of the VAT: http://ec.europa.eu/taxation_customs/common/consultations/tax/2010_11_future_vat_en.htm
UFI will continue to follow this issue closely, update information to our members and take appropriate steps as required. For any comments or questions, please contact our headquarters in France.