Michaela Merz

EU – Fair Taxation: Commission proposes final technical measures to create a future fraud-proof EU VAT system

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The Commission has proposed the detailed technical amendments to EU rules on VAT that supplement recent proposed overhaul of the system to make it more fraud-resilient.

This package of measures substantially modifies the rules relating to VAT and should make life easier for companies across the EU, putting an end to 25 years of a ‘transitional’ VAT regime in the Single Market. Last October, the Commission proposed the main principles for the creation of a single EU VAT area which would help to shut down the estimated €50 billion in fraud currently affecting national budgets annually in EU Member States. With these technical measures, the Commission hopes that Member States will kick-start discussions on the broader principles or ‘cornerstones’ of a simpler and resilient definitive EU VAT system for the trade in goods within the EU.

Please click HERE to read more.

I have some questions

Will it come really in 2022? What is reality even for quick fixes in 2019? In 2020?

Does it really simplify? In my opinion the complexity will increase as companies might have double the applicable transaction flows, depending on their and their customer’s status (CTP).

I doubt if the introduction costs of 0.5 billion are not underestimating the high complexity of ERP set up and what does it mean to make such a change in complex environment.

The CTP definition still excludes non-EU established entities. This will bring significant disadvantages to Swiss, UK and all other non EU companies. Does it happen by purpose?

Destination principal is great. Might this however  end with a big cash flow surprise for certain countries?

Is Call-off stock simplification dead?

 

Bildquelle: Erich Westendarp  / pixelio.de

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