Reform of the EU VAT System for Cross-Border Trade

Summary

The proposal aims to replace current transitional VAT rules with a definitive system based on the destination principle. This change is intended to simplify trade, reduce administrative burdens, and combat cross-border VAT fraud.
10 12.02.2019
Other
trade
economy
finance
taxation
european union
administrative law
business and competition
information technology and data processing

Key points

  • Transitioning the EU tax model from an origin-based system to a destination-based system for intra-Union trade.
  • Aiming to reduce cross-border VAT fraud, which could potentially save the EU approximately 50 billion euros annually.
  • Establishing a multilingual and publicly accessible Union VAT Web Information Portal to assist businesses and consumers.
  • Introducing a 'certified taxable person' status for businesses that meet strict financial solvency and criminal record criteria.
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