Brussels, 23/01/2008 (Agence Europe) - Two external studies published last week by the European Commission show that European companies are fearful about legislative proposals, expected in February, to combat VAT (value added tax) fraud. Almost all the companies interviewed perceive the planned changes - increasing the frequency of submissions on intra-Community deliveries to be sent to the tax authorities and more detailed information to be submitted - as an additional burden with no obvious added value for companies.
The first study focused on increasing the frequency with which companies will have to make recapitulative statements on their intra-Community deliveries. The Commission wants such submissions to be made every month, rather than every three months as at present. According to the study, the additional costs could amount to an average of €6,300 per company per year - eight times more than at present. The second study, which looked at the greater detail of the information required, said that initial costs to meet the new criteria would be over €62,000 per company (investment in a new system, staff training). The annual recurrent costs for the management of the system would thereafter not be high, of the order of €2,500 on average. The two studies note that the use of electronic means, and the ability of national tax authorities to manage the flow of information, will have an impact on the administrative burden.
The Commission is also expected, in February, to propose reducing to one month, rather than three as at present, the maximum time for information exchange between tax authorities. At the start of December, the Ecofin Council approved the legislative initiatives which the Commission announced in its communication on improving administrative cooperation in combating VAT fraud (see EUROPE 9550 and 9555). It also called on the Commission into take account of the target of a 25% reduction in companies' administrative burden. The studies can be consulted at: http: //ec.europa.eu/taxation_customs/common/publications/ studies/index_en.htm (M.B.)