What is the expected impact of the proposal for the European financial and insurance companies?
Clarification of the definitions of exempt financial services should reduce compliance costs for business. Consistent interpretation will mean that an interpretation applied in one Member State will be valid elsewhere – business has repeatedly made the point that having to renegotiate the interpretation of the exemption with each Member State individually is a major cost and a barrier to pan-European expansion. The Commission expects a considerable improvement here. In addition, the two other measures proposed would help the financial and insurance companies to better manage the impact of non-recoverable VAT– changes in cost sharing rules and the rules for option to tax. This should reduce costs because of non-recoverable VAT and make companies more profitable or cost of their services lower than they are. What is the expected impact of the proposal on the international competitiveness of the European financial and insurance companies? The main purpose of the initiative is to protect t
