The European Commission VAT expert group (VEG) has adopted an opinion on the Commission’s VAT action plan, published in April. The plan outlined proposals for a single EU VAT area; short-term measures for exchange of information to tackle fraud; greater flexibility over reduced rates; and simplified rules for e-commerce, including an SME VAT package.
The VEG supports the aim of a definitive system for a single EU VAT area, based on the destination principle for taxing cross-border business-to-business transactions. It warns against individual member states adopting specific approaches, such as a generalised reverse-charge system, stating that this would ‘put at risk the development of a coherent, harmonised and fraud proof VAT system’. See http://bit.ly/1jUHQGj.
The European Commission VAT expert group (VEG) has adopted an opinion on the Commission’s VAT action plan, published in April. The plan outlined proposals for a single EU VAT area; short-term measures for exchange of information to tackle fraud; greater flexibility over reduced rates; and simplified rules for e-commerce, including an SME VAT package.
The VEG supports the aim of a definitive system for a single EU VAT area, based on the destination principle for taxing cross-border business-to-business transactions. It warns against individual member states adopting specific approaches, such as a generalised reverse-charge system, stating that this would ‘put at risk the development of a coherent, harmonised and fraud proof VAT system’. See http://bit.ly/1jUHQGj.
