The European Parliament has approved the final text of a report on the European Commission's proposal for a Common system of value added tax, including a special scheme for small enterprises.

 Last July, the Committee on Economic and Monetary Affairs of the European Parliament (ECON) had adopted several of Maltese MEP Alfred Sant's proposed changes to the European  Commission text on a special VAT Exemption Scheme for small enterprises across the EU, a statement by the MEP read. The scheme updates existing arrangements by which small and medium sized enterprises are exempted from certain VAT obligations that are administratively burdensome for them. It also extends the exemption system to smes that begin to export.

The report included Alfred Sant's proposals on facilitating the operations of small enterprises in small economies similar to those in Malta and Gozo, the statement read. "They served to strengthen the measures already found in the Commission's draft and intended to lighten the compliance burdens on small enterprises across the EU  and to help them further engage in EU cross-border trade."

The Maltese MEP had proposed, as shadow rapporteur on behalf of the S&D EU Parliamentary Group, "a change in favour of SMEs facing seasonal factors or irregular demand, extending the transitional regime foreseen in the Directive. When SMEs overrun the exemption thresholds, they should be provided with a two year, rather a one year transition period, during which they can still benefit from the exemption status. This should accompany SMEs confronted with highs and lows on their economic growth path."

The report was approved with 618 votes in favour, 40 against, 24 abstentions.