EC set to update progress on VAT reforms
- Jun 23, 2021 | Avalara
The European Commission is set to update progress made so far on future Value Added Tax reforms. This is in addition to the ecommerce package set to come into place on 1 July 2021, withdrawing distance selling thresholds and the €22 import VAT exemption.
Reforms under discussion, mostly revealed in the 2020 Tax Action Plan, include:
- Potential extension of One Stop-Shop return to all B2C cross-border transactions
- Freeing member states to set reduced VAT rates without reference to the VAT Directive
- Harmonisation proposals on transactional reporting, including live reporting and e-invoices
Any update should come in the following few weeks following the latest ECOFIN meeting.