Introducing the definitive VAT system for B2B cross-border trade [EU Legislation in Progress]

Written by Ana Claudia Alfieri (1st edition),

Important of VAT, tax in buy and sell business, colorful arrows pointing to the word VAT at the center on black cement wall, financial income have to pay government tax by law.

© Nuthawut / Fotolia

Value added tax (VAT) is an important source of revenue for national governments and the European Union (EU) budget and, from an economic point of view, it is a very efficient consumption tax. However, the existing rules governing intra-Community trade are 25 years old and the current common EU VAT system presents such problems as vulnerability to fraud, high compliance costs for businesses and also a heavy administrative burden for national authorities.

The reform of the system is planned in several consecutive steps, first for goods and then for services, and will take some years. This proposal introduces the basic features of the definite VAT system for business-to-business (B2B) transactions of goods and aims to harmonise and simplify certain rules of the current VAT system, by amending the VAT Directive (Directive 2006/112/EC).

Versions

Stage: National Parliaments opinion

Source Article from https://epthinktank.eu/2018/07/19/introducing-the-definitive-vat-system-for-b2b-cross-border-trade-eu-legislation-in-progress/