Opinion VAT Expert Group: Creating a definitive VAT regime

The VAT Expert Group welcomes the initiative of the EU Commission to further explore possible options for implementing the destination principle in B2B cross-border trade in order to ensure a level playing field between EU cross-border and domestic transactions and at the same time tackling the problem of VAT fraud.

The Expert Group calls upon all stakeholders – Member States, Commission and business to:

  1. make effective use of existing measures to tackle VAT fraud in the short term. In particular, Member States and the Commission should make increased efforts to improve the efficiency of and international cooperation between national tax administrations;
  2. cooperate to tackle and resolve the problem of VAT fraud in the EU VAT system in a coordinated approach that is fully compatible with the requirements of the Single Market;
  3. actively, timely and efficiently work together in order to create a robust, fair and efficient destination based definitive system for the Single European VAT Area.

This opinion of the Expert Group will also have impact on the cross-border e-commerce sector since these initiatives can only succeed with a fully coordinated European collaboration. Let's wait and see, hopefully the Ecofin meeting on May 25th, 2016 will reveal more details.


If you have any questions regarding this topic, please contact one of our VAT Compliance advisors. 

Source: https://ec.europa.eu/