Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-10-13-Speech-4-028-000"
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"en.20111013.3.4-028-000"2
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"Madam President, all I can say is that this is an excellent report. The focus is in the right place, which is to say, on increased efficiency, reduced bureaucracy and a stronger fight against fraud. There is a great deal to be gained by improving the VAT Directive in these areas.
More specifically, I would like to emphasise the question of VAT rules for non-profit making organisations. There are weaknesses in the directive in this regard. Austria, Denmark, Finland and Sweden have been criticised by the Commission for not having applied the current legislation correctly. These countries may perhaps need to make certain adjustments to their national rules for associations, but the main problem lies at European level. The best solution would be for provisions to be introduced into the VAT Directive that allow the Member States to apply general VAT exemptions to the non-profit making sector. We need to restrict the exceptions that we allow, but in this case, it is fully justified to increase national flexibility.
The general VAT exemption for non-profit making organisations is an excellent way to promote civil society. A rich voluntary sector is the mainstay of a well-functioning democracy, and it is perfectly possible to formulate this sort of exemption in such a way that it does not distort competition. We are talking about voluntary activities on a limited scale, which are clearly separated from commercial activity. The main aim of the exemption is not to strengthen the finances of the non-profit making organisations, but to reduce the administrative burden on those enthusiastic souls who manage the budgets in their spare time. Therefore, the exemption cannot be replaced by subsidies; it is the reduction in bureaucracy that is the important issue. It is good that the report fully supports this way of looking at VAT in the voluntary sector, and it is a very important signal to the Commission ahead of the next stage of the process. I would also like to say a big thank you to the rapporteur, and thank you for the opportunity to speak."@en1
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