EU continues legal action against UK, France, Poland, Portugal over VAT laws

The European Commission said it has continued its legal action against the UK, France, Poland and Portugal over various VAT provisions in domestic legislation that do not conform with EU rules.

For the UK, the legislation concerns the refund of VAT borne by taxable persons not established in the EU. For France, the measures relate to VAT rates applied to transactions performed by undertakers.

As regards Poland and Portugal, the measures relate to the inclusion of the amount of car registration taxes within the taxable amount of VAT in the case of supply of road vehicles.

The EU executive considers the registration tax should not be included in the taxable amount of VAT.

All the requests take the form of a 'reasoned opinion', the second stage in the EU infringement process. Failure to respond within two months can see member states before the EU courts.

Source: forbes.com