The EU VAT forum sub-group has published a report on prevention and solution of VAT double taxation disputes, proposing a set of short-term, medium-term and long-term actions that member states’ tax authorities should take. The report notes that the EU does not currently have a measure for the economic or quantitative impact of VAT double taxation/non-taxation. The only available indicator is the number of cases on related matters that reach the Court of Justice. While a number of tools are available to businesses and tax authorities to address cross-border VAT disputes, none of them provide a solution for all cases.
The report recommends:
in the short term, better communication and dialogue between tax authorities and between tax authorities and taxpayers;
in the medium term, upgrading the existing tools, such as the pilot for EU VAT cross-border rulings and SOLVIT online service; and
in the long term, explore a comprehensive legal framework for a mechanism involving taxpayers and member states to prevent and/or solve VAT double taxation situations.
The EU VAT forum offers a discussion platform where business and VAT authorities meet to discuss how the implementation of the VAT legislation can be improved in practice.
The EU VAT forum sub-group has published a report on prevention and solution of VAT double taxation disputes, proposing a set of short-term, medium-term and long-term actions that member states’ tax authorities should take. The report notes that the EU does not currently have a measure for the economic or quantitative impact of VAT double taxation/non-taxation. The only available indicator is the number of cases on related matters that reach the Court of Justice. While a number of tools are available to businesses and tax authorities to address cross-border VAT disputes, none of them provide a solution for all cases.
The report recommends:
in the short term, better communication and dialogue between tax authorities and between tax authorities and taxpayers;
in the medium term, upgrading the existing tools, such as the pilot for EU VAT cross-border rulings and SOLVIT online service; and
in the long term, explore a comprehensive legal framework for a mechanism involving taxpayers and member states to prevent and/or solve VAT double taxation situations.
The EU VAT forum offers a discussion platform where business and VAT authorities meet to discuss how the implementation of the VAT legislation can be improved in practice.
