On May 20, 2016 the VAT Expert Group issued an opinion on the European Commission’s Action Plan on VAT – creating a definitive regime. In this opinion the VAT Expert Group states that it welcomes the initiative of the EU Commission to further explore possible options for implementing the destination principle in B2B cross-border trade in order to ensure a level playing field between EU cross-border and domestic transactions and at the same time tackling the problem of VAT fraud.
In the opinion the VAT Expert Group also states the following:
“The Action Plan launched by the EU Commission calls for urgent action on devising an EU wide definitive VAT regime in consultation with all stakeholders in accordance with the Commission’s Better Regulation guidelines. Any Member State specific approaches, such as a generalised reverse charge system, even on an experimental and national basis, would put at risk the development of a coherent, harmonized and fraud proof VAT system for all Member States and stakeholders. Any such uncoordinated standalone measures adopted by Member States would shift focus from the overriding objective of putting in place a definitive regime at the earliest opportunity. It would create additional distortions within the internal market and thereby also increase opportunities for fraud. We urge the Commission and Member States to abstain from supporting such Member State specific approaches and to work together with all stakeholders in devising a definitive VAT system.”
The latter seems to be aimed against a.o. Austria’s repeated requests for being allowed to run a pilot on a general applicable reverse charge mechanism. (see in this respect a.o. our article form April 26, 2016)
Click here to be forwarded to the opinion of the VAT Expert Group from May 20, 2016 as available on the website of the European Commission, which will open in a new window.
Copyright – internationaltaxplaza.info
Are you looking for a motivated newcolleague? Then place your job ad on International Tax Plaza!
and
Stay informed: Subscribe to International Tax Plaza’s Newsletter! It’s completely FREE OF CHARGE!
