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EU Commission acts on states’ VAT rule breaking

  • Jul 29, 2021 | Avalara

The European Commission (EC) has issued a range of first warnings – infringement procedure - to certain member states for infringing the VAT Directive rules. Affected member states generally have two months to respond, including the right to appeal.

The warnings have been sent to:

  • Lithuania - Including the separate income of business owners in the calculation of VAT registration thresholds.
  • Romania - Failure to introduce all unregistered businesses to apply for the One-Stop Shop return.
  • Cyprus - Cyprus allows a 5% reduced rate on dwellings. The VAT Directive does allow Member States to apply a reduced rate of VAT on housing as part of a social policy.


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Avalara Author
Avalara Author Avalara
Avalara helps businesses of all sizes get tax compliance right. In partnership with leading ERP, accounting, ecommerce, and other financial management system providers, Avalara delivers cloud-based compliance solutions for various transaction taxes, including sales and use, VAT, excise, communications, and other indirect tax types. Headquartered in Seattle, Avalara has offices across the U.S. and around the world in the U.K., Belgium, Brazil, and India.
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