European Commission proposed new VAT rules

On 18 January 2018 the European Commission published 2 proposals for new VAT rules. One proposal is related to VAT rates, i.e. EU member states will have a right to introduce reduced VAT rate below 5% save for the specific goods. Another proposal is for small enterprises. The small enterprises with a turnover between EUR 100,000 to EUR 2,000,000 may benefit from annual threshold when trading in other EU member state that could not be higher than EUR 100,000.