Despite the UK government’s decision to remove low value consignment relief (LVCR) on mail order products from the Channel Islands to prevent big offshore retailers exploiting a VAT loophole, the EU’s final importation rules may be making LVCR unpoliceable.
Speaking in London today, Christine Lagarde, managing director of the IMF, said that if UK recovery does not take off, the government should consider fiscal stimulus measures including a temporary VAT cut.
Despite UK Prime Minister David Cameron’s attempts to bury his head in the sand over the prospect of a financial transaction tax (FTT), its supporters are growing.
At a meeting in Brussels this week, the Economic and Financial Affairs (ECOFIN) Council gave the green light to a number of the European Commission’s proposals to make the EU’s VAT system simpler, more efficient and more robust.
In just over a month, EU member states are set to vote on introducing a financial transaction tax (FTT). The major economies of Europe remain polarised on the issue and agreement has been hard to find, but in an exclusive interview, Algirdas Šemeta, European Commissioner for tax, customs union, audit and anti-fraud explains why he has not given up on an EU-wide FTT, why it remains the best option for taxing the financial sector, and how it could work under enhanced cooperation.
