On 7 April 2016 the European Commission published an action plan (www.bit.ly/1Xu2QcI) which set out proposals to modernise the current EU VAT rules and reduce the opportunity for VAT fraud. This included a new definitive VAT regime for a single European VAT area that would treat cross-border transactions in the same way as domestic transactions.
Under the new regime cross-border transactions would be taxed based on the destination principle (with VAT being due in the customer’s country) regardless of whether the customer is a consumer or in business. In addition the way VAT is collected would gradually be changed. The supplier would be required to charge and account for the VAT due applying the applicable rate in the customer’s country. This will require significant co-operation between...
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:
On 7 April 2016 the European Commission published an action plan (www.bit.ly/1Xu2QcI) which set out proposals to modernise the current EU VAT rules and reduce the opportunity for VAT fraud. This included a new definitive VAT regime for a single European VAT area that would treat cross-border transactions in the same way as domestic transactions.
Under the new regime cross-border transactions would be taxed based on the destination principle (with VAT being due in the customer’s country) regardless of whether the customer is a consumer or in business. In addition the way VAT is collected would gradually be changed. The supplier would be required to charge and account for the VAT due applying the applicable rate in the customer’s country. This will require significant co-operation between...
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:
