EU to audit VAT recovery

The European Commission has launched an audit of the foreign VAT recovery administration of the EU 28 member states.

The EC is anxious to see if countries are providing an adequate and efficient cash refund for companies incurring foreign EU VAT on company expenses. It is concerned that delays act as a disincentive to cross-border trade and the promotion of the Single Market.

The review will last eight months, and include a review of compliance with the EU 8th Directive on VAT recovery and the European Court of Justice. Any material breaches could result in the EC launching infringement procedures against and state.

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