EU ECON reviews definitive VAT system
- May 11, 2018 | Richard Asquith
The European Union's Parliamentary economic and monetary affairs committee, ECON, has recommended changes to the proposed 'definitive VAT system'.
The new regime has been proposed by the European Commission, and includes shifting to a destination-based VAT system from January 2022. There are also four 'quick fixes' to help the current regime: simplified intra-community proof of transport; proof of valid VAT numbers; consistent simplification of call-off stock VAT; and simplified chain transactions.
ECON has challenged the proposal for a 'certified taxable person'. This would enable qualifying companies to have reduced compliance requirements for the above. ECON believes the application process is less than transparent and needs a better appeals procedure.
ECON also suggests developing the current pilot VAT cross-border ruling process into a fully fledged VAT dispute resolution system in 2020.
