Rating the European Commission’s Proposal on VAT Rates

On 18 January 2018, in a string of recent proposals concerning the “definitive VAT system”, the European Commission issued a proposal for a Council Directive reforming the current VAT rate system. In order to fully grasp the implications of this proposal, it is not sufficient to merely look at its content. Regard must also be had to the impact on the rates currently applied by the Member States. To this end, the author use Belgium as a case study to highlight deviations from the current VAT rate system and to analyse the possible implications of the new VAT rate proposal on Member States’ practices.