VAT news tagged as "European Commission"

Europe

EU to audit VAT recovery

February 16th, 2018

The European Commission has launched an audit of the foreign VAT recovery administration of the EU 28 member states. The EC is anxious to see if countries are providing an adequate and efficient cash refund for companies incurring foreign EU VAT on company expenses. It is concerned that delays act as a disincentive to cross-border …


Europe

EU proposes exempting SMEs from cross-border VAT obligation

January 20th, 2018

On 18 January 2018, the European Commission (EU) published a proposal to eliminate foreign EU VAT obligations for small enterprises (‘SME’). Currently, EU small businesses selling in their own country are exempt from VAT if their sales are below a set threshold. This threshold varies between member states, e.g. €10,000 in France; and £85,000 in …


Europe

EU VAT reduced rates overhaul

January 18th, 2018

The European Commission has today issued proposals giving more flexibility to EU member states in setting their reduced VAT rates.  The plans could be implemented in 2022. Presently, states are limited to two reduced VAT rates below their national standard VAT rate, but no lower than 5%.  Countries may only set their reduced rates for prescribed goods and …


Worldwide

2018 Weaponising VAT

December 4th, 2017

Brexit. VAT fraud. Austerity straitjackets. Global tax wars. These are the colliding dynamics which in 2018 will lead to the UK, and worldwide governments, to undertake drastic measures on VAT and other taxes. This could include an emergency measure to relieve importers/exporters of potential Brexit VAT liabilities, through to the European Commission up-ending the entire …


Germany

Germany stalls €7billion EU VAT E-Commerce Package

November 7th, 2017

Today’s monthly meeting of EU Finance Ministers, ECOFIN, failed to reach agreement on a proposed €7billion VAT E-commerce Package.  This included a plan to make the major international platforms (e.g. Amazon and eBay) potentially liable for VAT fraud by non-EU Sellers. The Package aims to boost member states’ tax receipts by an estimated €7 billion by …


Europe

EU VAT reform challenges

October 29th, 2017

On 4 October, the European Commission (EC) announced a fundamental reform of the EU VAT regime to help combat an estimated €50billion of annual VAT fraud. 3 major changes to the B2B EU VAT regime 2019 Introducing four ‘Quick Fixes’ to ameliorate the existing VAT regime on international B2B transactions, including: Harmonisation across the states …


Europe

EU VAT general reverse charge delayed

March 22nd, 2017

The European Commission’s proposal for the voluntary introduction of the general reverse charge to combat VAT fraud has been put on pause.  The delay is due to legal concerns raised at this week’s ECOFIN meeting of EU Finance Ministers. The EU’s Legal team has highlighted several issues, including: There is uncertainty if the EU Council or the …


Europe

EU VAT fraud sweeping reverse charge proposal

December 29th, 2016

The European Commission has proposed allowing member states to introduce the domestic reverse charge on all B2B transactions above €10,000 across all sectors. The move would effectively remove VAT payments in the supply chain in an effort to reduce VAT fraud, estimated to cost the EU over €40 billion per annum.  Such a measure would be …