Press Release: Positive outcome for Black Friday 2024
29 November 2024
Feedback reported to the Malta Chamber of SMEs on Black Friday results indicates mixed outcomes....
GRTU Presents Position Paper – GRTU has this week presented its
Position Paper on the Review of Existing Legislation on Vat Reduced Rates and
requested that it would be taken into consideration when drafting Malta's
position.GRTU welcomes the initiative from the
European Commission to launch a consultation on the reduced VAT rates.
Step-by-Step
Approach
In a global approach of a VAT rates'
harmonisation GRTU suggests a thorough revision of the annex on reduced VAT
rates. In the ideal VAT world, there, in the long run, should be one EU VAT
system with harmonised rules and without borders between member states, one VAT
administration and one VAT return for all transactions within the single
market. Instead of 27 sets of VAT-rates, there would only be one VAT rate. From
a purely technical point of view, this would make the EU VAT system simpler,
more robust and more efficient. However, this ideal world does not yet exist
and the road to the single market EU VAT system is very long and winding.
Therefore, for the time being, GRTU reiterates its proposal to improve the
current system in a step-by-step approach.
Economic
Crisis
Needless to say, however, the topic
of reduced VAT rates, is and will remain very sensitive. Despite the undeniable
necessity of a sound consolidation of national households, purchasing power
needs to be strengthened as an effective tool to fight the current economic
crisis in the short and medium-term. Any additional burden on consumption by
raising the regular or the reduced VAT rates would jeopardise Europe's
move towards sustainable growth.
Outlook
Currently, the decision-making power
to apply reduced VAT rates is at the level of the individual Member State.
The Member States will not give up this autonomy. Moreover, a lot of businesses
in the ‘reduced rates-businesses' (and not only limited to those in the border
areas) will be very reluctant to accept any abolition of the reduced VAT rates,
even though it might be beneficial to them in the long term. For the time
being, it should therefore also be considered to keep this autonomy at the
level of the Member States.
GRTU is of the opinion that it would
still be worthwhile for the European Commission to investigate whether further
improvements can be made as a next step to the harmonised EU VAT system,
keeping in mind the budgetary/economic, the political and, not least, the
psychological impact.
The Malta Chamber of SMEs represents over 7,000 members from over 90 different sectors which in their majority are either small or medium sized companies, and such issues like the one we're experiencing right now, it's important to be united. Malta Chamber of SMEs offers a number of different services tailored to its members' individual requirements' and necessities. These range from general services offered to all members to more individual & bespoke services catered for specific requirements.
A membership with Malta Chamber of SMEs will guarantee that you are constantly updated and informed with different opportunities which will directly benefit your business and help you grow. It also entails you to a number of services which in their majority are free of charge and offered exclusively to its members (in their majority all free of charge).