EC adopts draft definitive VAT regime Directive
- EU VAT
- 25 May 2018 | Richard Asquith
The European Commission today adopted a new draft EU VAT Directive for the operation of the definitive VAT system. This includes changing to a destination-based VAT regime, and withdrawing zero-rating on intra-community supplies. The aim is to help eliminate and estimated €50billion in VAT fraud, particularly carousel fraud.
The new draft includes over 200 amendments to the existing VAT Directive 2006/112/EC. The changes the new Directive includes:
- Withdrawal of zero-rating intra-community supplies on B2B transactions. Instead, vendors will be required to charge the VAT rate of the customer (defined by where the transport ends).
- Introduction of the One-Stop-Shop portal (based on the MOSS portal) for the VAT charged on the above to be recording and paid in the home country of the vendor
- Enforcing the VAT invoicing rules of the vendor’s country on such transaction
Poland’s Ministry of Finance has announced that it will recategorise many supplies to within the current reduced VAT rate category. However, this will mean Poland will not...
Hungary has received permission to introduce an VAT registration threshold for businesses of HUF 12 million from 1 January 2019. This is approximately €48,000, based...
HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public. However, HMRC also announced...