24 October 2019

After 26 years, Christmas is coming for businesses trading across Europe. Or is it?

 

The European Union’s transitional VAT system – in place since 1993 – has long created large compliance and administrative hurdles for businesses. The definitive VAT regime – an origin-based system of VAT – is meant to relieve the pressure and eliminate the need for businesses to register in every member state they may trade with.

So how would the definitive system work in practice? Which taxpayers would be able to use the simplified system and when is it meant to take effect? Listen to episode five of the Value Added Talk podcast to find out.

Have a question for the show? Ask it below.

Short on time? Skip ahead: 

00:01 Intro
05:58 A brief history of the VAT system in the EU
07:26 What is the problem with the transitional VAT system?
09:43 What is the definitive VAT system?
12:57 What could impact the chargeability of VAT under the proposed system?
14:09 How to keep off the naughty list
16:55 Principles of the definitive system
17:55 How sales would be reported
19:35 Is Christmas really coming?
24:05 Challenges in implementing the definitive system
28:05 Closing thoughts

Read Jacek’s contribution on how tax will change in the 2020s in the September/October edition of Accounting Technician.

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