The EACB gladly takes the opportunity to comment on the EC roadmap consultation about VAT on Financial Services

The European Association of Co-operative Banks (EACB) welcomes the modernization of the VAT treatment of financial services as the existing regulations are out-of-date and do no longer reflect current practices in the financial sector. The current situation leads to legal uncertainty and an unbalanced level playing field and thus a lack of neutrality. To remain competitive in international financial markets, there is an urgent need to achieve greater legal certainty concerning the VAT status of financial services and, at the same time, ensure the neutrality of VAT and thus avoid additional costs for the financial industry. For this reason, the EACB members believe that the new initiative of the European Commission, started last year with preparations for a study by collecting the most comprehensive data possible and producing an overview of the measures applied by Member States regarding the provisions governing the VAT treatment of financial and insurance services, is therefore highly important.