The European Commission published plans on 4 October 2017 that would fundamentally change the current VAT system applied by EU Member States. The proposals are aimed on the one hand at cutting back on VAT fraud, and on the other at simplifying procedures for businesses. The central feature of the new VAT regime would be that sales of goods across EU borders would be taxed in the same way as sales within a single EU Member State. That means that trades between businesses in different Member States would no longer be exempt from VAT in the seller’s jurisdiction. Administrative improvements will include aligning the declaration and payment processes for cross-border business with the seller’s local rules. Detailed legislative rules are expected to be drawn up for EU approval in 2018.
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