Economy Minister: EU VAT reform must ensure equal treatment for member states

The planned reform of European Union VAT rules must ensure equal treatment for member states, Economy Minister Mihály Varga said at a meeting of EU finance ministers in Brussels on Tuesday.

The Ecofin meeting saw participants present their positions on the deepening of the economic and monetary union, Varga said in a statement.

The Hungarian government believes it is important that the talks on VAT reform include all member states and not just euro zone members, he said.

“We agree that VAT rules need to be simplified and that the scale of tax evasion should be reduced, but we continue to stand by our electronic system for oversight of goods transported by hauliers, an innovation that has been proven effective,” Varga said. The fact that it has been adopted by several member states is a testament to that, he added.

According to the European Commission’s proposal, the VAT reforms would provide more flexibility to set reduced VAT rates and would cut red tape for small and medium-sized companies, Varga noted.