The EU VAT regime is starting to show its age, writes Richard Asquith (Avalara).
The EU VAT regime is showing is age. It is under stress from ballooning fraud and new digital businesses models which expose loopholes and a lack of flexibility. To adapt the regime for the 21st century in 2016 the European Commission launched a hugely ambitious range of reforms: the ‘action plan on VAT’. This article examines the Commission’s progress to date its proposed further reforms and the challenges ahead.
Increases in fraud and e-commerce
The current EU VAT regime contained within the Council Directive 2006/112/EC (the ‘EU VAT Directive’) has remained largely unchanged following the inception of the EU single market in 1993.
Since then two major forces have exposed the need for a radical update. First VAT fraud perpetrated by criminal gangs exploiting the current...
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The EU VAT regime is starting to show its age, writes Richard Asquith (Avalara).
The EU VAT regime is showing is age. It is under stress from ballooning fraud and new digital businesses models which expose loopholes and a lack of flexibility. To adapt the regime for the 21st century in 2016 the European Commission launched a hugely ambitious range of reforms: the ‘action plan on VAT’. This article examines the Commission’s progress to date its proposed further reforms and the challenges ahead.
Increases in fraud and e-commerce
The current EU VAT regime contained within the Council Directive 2006/112/EC (the ‘EU VAT Directive’) has remained largely unchanged following the inception of the EU single market in 1993.
Since then two major forces have exposed the need for a radical update. First VAT fraud perpetrated by criminal gangs exploiting the current...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
