EU Parliament highlight disproportionate cost for small businesses; EU VAT rate could be cut to 15% if reduced rates withdrawn An EU Parliamentary Research Service study has highlighted that the use of reduced VAT rates by member states raises the compliance costs for businesses. In
Harmonised tax data requests for marketplaces; efficient exchange of data between tax authorities – first reports due 2024 for transactions in 2023 Directive on Administration Cooperation (DAC 7) has been approved by the EU Council. The new digital platform seller rules will come into effect
The European Union’s Transaction Network Analysis services is a tool shared by member states to gather and compare VAT transactional data to help detect fraud. It was launched by Belgium with other Benelux states in 2014 as a pilot, and grew to ten states by
Grand plan may now fall to side as VAT in the Digital Age reforms progress The proposed grand solution to tackle over €50billion in EU VAT fraud, the Definitive VAT System, is in trouble. The plan to switch from an origin to destination-based VAT on
VAT – gig and sharing economies As part of the VAT in the Digital Age review of the impact and best policies for indirect tax reforms, the European Commission is reviewing ‘VAT Treatment of the Platform Economy’. This includes the VAT effects for the gig
Can the definitive VAT system or other reforms close fraud gap? The European Parliament has reviewed a range of measures to close EU VAT Gap – the difference between forecast VAT revenues versus actuals. This was as a formal European added value (EAV) assessment, to
EC seeks to harmonise live transaction reporting – 3 alternatives The European Commission (EC) is undertaking a review to introduce harmonised Transaction Based Reporting (TBR) across the 27 member states, which includes potentially e-invoicing. This is part of the VAT in the Digital Age, reforms
The introduction on 1 July 2021 of the new Import One-Stop Shop IOSS is helping thousands of sellers report sales VAT on their sales of imported consignments not exceeding €150. But deemed supplier marketplaces or ‘electronic interfaces’ may also opt to use them too. Register
May 2023 update: The EC has proposed ending the €150 VAT threshold on consignment stocks from March 2028. On 1 July 2021, the EU e-commerce package introduced the obligation to charge sales VAT at the point-of-sale on sales of goods consignments with an intrinsic value
The European Union member states have adopted changes to the data sharing rules to facilitate fraud detection around the new IOSS import VAT scheme which was implemented as part of the EU e-commerce VAT package on 1 July 2021. IOSS exempts consignments not exceeding €150
