VAT collection via source tax instead of reserve charge

From the introduction of the EU internal market in 1993 up to the eastern enlargement of 1 May 2004, the EU Ministers of Finance have changed the common VAT law once a year, on average. In the Europe of 25, as a result of the unanimity principle, they have not implemented a single proposal of the European Commission. Also in the last session under the Austria Council presidency, no agreement was reached on VAT. The Ifo Institute proposes a source tax procedure adapted from previous studies as a way of overcoming the resistances of the EU Council of Ministers.