MEP David Casa has been appointed rapporteur on a European Parliament report on the minimum standard rate of value added tax across the EU.

The minimum standard rate that is set by the VAT Directive is due to expire at the end of the year. The current minimum standard rate is set at 15% in member states. The Commission proposal as it is currently drafted aims to extend the applicable period of the minimum standard rate by another five years, leaving it at 15%.

"It is imperative that during these times of economic turmoil the business sector has an amount of certainty of what the future will hold. For this reason it is essential that the Commission proposal is analysed and that a European Parliament position is formulated as soon as possible", Mr Casa said.

While there has been an ongoing debate as to the establishment of a maximum standard rate of VAT, this has not been incorporated into the Commission proposal.

"We have seen numerous positive developments with regards to the common VAT system, having been based on the VAT strategy that was last updated in 2003. Nevertheless shortcomings as well as a number of administrative burdens are still in existence. I look forward to the publication of the green paper that the Commission has promised to issue in the near future. It is only through such an exercise that we will be able to establish a long-term strategy in respect of standardised VAT rates within EU member states", said Mr Casa.