VAT news tagged as "European Commission"

Europe

EU consults on VAT fraud

March 24th, 2018

The European Commission has launched a consultation on the free exchange of tax data between member states to help fight VAT fraud in the area of e-commerce. It seeks to understand from the online marketplaces, tax authorities and payment companies how best to detect and prevent undeclared transactions for VAT purposes. 3 potential solutions are …


Europe

EU Single VAT Area challenge

March 12th, 2018

The small enterprise association, UEAPME, has challenged the admin burden that the European Commission’s 2022 Single VAT Area proposal may impose. UEAPME, an employers’ association, is concerned that the requirement to track and correctly charge national VAT rates on B2B transactions across 28 states will place a high compliance burden on small companies. It also believes …


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 …