The European Commission’s VAT Expert Group recommends “building an efficient, fair, and neutral VAT framework”, following the adoption by the EU Council in November of the legislative package on VAT in the Digital Age (ViDA) (see EUROPE 13518/13), in its report published on Monday 16 December.
“If adopted, [this framework] would reduce administrative burdens for businesses, streamline the VAT system across Member States, and position VAT as a robust, future-ready tax structure promoting the EU’s future economic competitiveness”, the group assures. It has therefore drawn up a strategic roadmap to further explore a modernised and long-term future VAT system that leverages digitalisation, simplifies compliance, safeguards VAT revenues and supports EU sustainability goals.
The report contains a series of deliverables to be further explored aiming at setting up a long-term future VAT system in order to boost future growth and the EU’s economic competitiveness. This includes enhancing the ‘ViDA’ directive framework to reduce administrative burdens and legal uncertainties. It also proposes updating the VAT system to better align with contemporary technology-driven business models and ensuring that sustainability goals are achieved.
Read the report: https://aeur.eu/f/ey1 (Original version in French by Anne Damiani)