EU Report to Call for Changes to VAT in Financial Sector

The value-added tax exemption for the EU’s financial sector is “misaligned with today’s economic and technological realities,” according to a draft European Parliament report.

The draft called for “advancing coordinated EU-wide taxation where feasible.” and developing minimum standards for temporary windfall taxation “to ensure predictability and coordination and alignment of exceptional profits with long-term public investment priorities.”

The report, dated Feb. 4 and published Monday, was written by Matthias Ecke, a German representative in the European Parliament belonging to the Socialists and Democrats group.

Members of the Parliament’s Committee on Economic and Monetary Affairs have until ...