darren No Comments

The European Commission has proposed to renew and improve the EU’s VAT system to help businesses and combat digital fraud. The proposal was motivated by the loss of 93 billion euros in VAT revenue by Member States in 2020 and the growing importance of the platform economy.

The proposed actions include:

  • Real-time digital reporting based on electronic invoicing for businesses operating cross-border within the EU, to provide useful information for the fight against VAT fraud. This could reduce VAT fraud by up to 11 billion euros per year and reduce administrative costs for operators.
  • New VAT rules for short-term transport and accommodation platforms, to make operators responsible for collecting and paying VAT, creating parity between online and traditional services.
  • A single VAT registration across the EU for businesses selling to consumers in another Member State, simplifying understanding and compliance with VAT rules.

These measures aim to raise up to 18 billion euros in additional VAT revenue per year and support the growth of businesses, particularly SMEs.

Share This:

Leave a Reply

Your email address will not be published.