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EU ECON reviews definitive VAT system

  • May 11, 2018 | Richard Asquith

EU ECON reviews definitive VAT system

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.