Written question asked by David Porter (Conservative), in the House of Commons. It was due for an answer on Friday, 24 January 1997. It was answered by Phillip Oppenheim (Conservative) on Friday, 24 January 1997 on behalf of the Treasury.

Treasury

Question: What are the EU Commission's plans for VAT after 2005; what decisions have been made about the United Kingdom's transitional system of VAT after 2005; what is the definitive system to which the Government has already agreed. - (Holding answer 21 January 1997).

Answer: Mr. Porter: To ask the Chancellor of the Exchequer what are the EU Commission's plans for VAT after 2005; what decisions have been made about the United Kingdom's transitional system of VAT after 2005; what is the definitive system to which the Government have already agreed; and if he will make a statement. [11188] Mr. Oppenheim: [holding answer 21 January 1997]: In July 1996 the European Commission produced a suggested programme for a common system of VAT, or "definitive system", to apply throughout the European Community. This programme contains no specific legislative proposals, but outlines a series of steps which the Commission proposes should be taken toward the creation of a common system. An explanatory memorandum on the Commission's proposals was submitted to Parliament last September. Any change to the EC VAT system requires the unanimous agreement of member states, and the current transitional regime continues automatically in the absence of an agreement upon a definitive regime. Discussion of the programme within the EC has so far been very limited, and no decisions have been made about the programme itself or about the future shape of the VAT system. Contrary to recent assertions in the press, the Government have agreed no changes, whether from 2005 or any other date.

Secondary information