The EU VAT regime has remained largely unchanged in recent years. However, it is at risk of being undermined by VAT fraud and by an increase in levels of e-commerce. In response, in 2016, the European Commission adopted a VAT action plan comprising a range of reforms intended to make the EU VAT system ‘simpler, more fraud-proof and business-friendly’. The first wave of progress has been good, including this year’s four ‘quick fixes’ to help combat missing trader fraud. 2021 promises wholesale reforms for e-commerce compliance, including marketplaces being co-opted in as VAT collectors. Payment provider will start reporting on credit card use in 2025. However, the 2021 measures leave open loopholes that will need further work; and the flagship reform, the 2022 definitive VAT system, is almost certain to miss its 2022 launch.
If you are not a subscriber, subscribe now to read this content.
The EU VAT regime has remained largely unchanged in recent years. However, it is at risk of being undermined by VAT fraud and by an increase in levels of e-commerce. In response, in 2016, the European Commission adopted a VAT action plan comprising a range of reforms intended to make the EU VAT system ‘simpler, more fraud-proof and business-friendly’. The first wave of progress has been good, including this year’s four ‘quick fixes’ to help combat missing trader fraud. 2021 promises wholesale reforms for e-commerce compliance, including marketplaces being co-opted in as VAT collectors. Payment provider will start reporting on credit card use in 2025. However, the 2021 measures leave open loopholes that will need further work; and the flagship reform, the 2022 definitive VAT system, is almost certain to miss its 2022 launch.
If you are not a subscriber, subscribe now to read this content.
.tmb-editorspic.jpg?sfvrsn=df04ab27_1)
