The European Parliament has given its seal of approval to a non-legislative report penned by Nationalist MEP David Casa aimed at feeding into a new VAT strategy being prepared by the Commission.

The main goal of the resolution is to strike a balance between maintaining VAT revenues at the levels needed to provide a major source of income while ensuring they do not choke the economy.

This could be achieved chiefly by tackling fraud, which currently costs the EU €100 billion in lost revenue, and reducing different exemptions and rates while devising smart, EU-wide systems that would make life easier for honest businesspeople and legitimate non-profit organisations in delivering their goods and services.

In his resolution, Mr Casa called on the Commission to propose a mechanism allowing member states wishing to strengthen civil society to grant a general VAT exemption for all or most of the activities and transactions carried out by these organisations, particularly smaller NGOs.

At the same time, the resolution recommends that the VAT rate should not be harmonised across the European Union, reflecting the broad consensus in the European Parliament that EU governments should retain full control over the amount of VAT they charge in their respective member states.

Mr Casa’s report was approved with 521 votes in favour.

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