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EC’s final VAT ‘destination principle’ report

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The EC has issued its final report on Implementing the ‘destination principle’ to intra-EU B2B supplies of goods, where the ‘destination principle’ is the taxation of supplies of goods in the member state of destination, as opposed to in the member state of origin.

The EC has issued its final report on Implementing the ‘destination principle’ to intra-EU B2B supplies of goods, where the ‘destination principle’ is the taxation of supplies of goods in the member state of destination, as opposed to in the member state of origin. The EC came up with five policy options designed to enable the implementation of a destination-based VAT system across the EU, and commissioned EY to gather information to assess their impact.

The study analyses the five policy options for tackling two essential issues in the current VAT system: the additional compliance costs borne by businesses that conduct cross-border trade when compared to those businesses that only trade domestically; and the occurrence of VAT fraud, such as MTIC fraud. See www.bit.ly/1D8TnSE.

Issue: 1273
Categories: News , VAT
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