European Union eases VAT rules
European politicians have agreed on a directive that will simplify VAT rules, ensuring that electronic invoices are accepted throughout the Union.
European politicians have agreed on a directive that will simplify VAT rules, ensuring that electronic invoices are accepted throughout the Union.
The European Union Council of Finance Ministers agreed that under the policy, companies will only have to follow a single set of rules governing VAT invoicing, rather than the 15 which are currently in place.
‘This important measure will cut the cost of administrative red tape for firms and facilitate ecommerce,’ said Fritz Bolkestein, taxation commissioner at the European Commission. The EC estimates that the administrative costs for paper invoices are 88p compared to 25p for electronic invoices.
The finance ministers agreed that electronic invoices should be recognised provided that their authenticity is guaranteed through the use of electronic signatures or electronic data interchange.
Ministers also agreed on a list of 10 mandatory items of information that must be included in every invoice. It will also be permissible to store electronic invoices online. The proposals will be formally adopted shortly, with the Directive coming into force by 1 January 2004.
‘This will mean the UK has to make changes to the VAT Act,’ said John Salmon, a partner at law firm Masons.
No one from the government was able to comment on when such changes would be introduced.
The proposals were initially aired in June 2000 following complaints from traders in Europe.
Currently, the 15 member states have different rules governing the information that has to be contained within invoices. Some EU countries prohibit electronic invoices, or require them to be backed up by paper versions.
The numbers you crunch tell a story. Your expertis...
22yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe amount of tax saved by businesses through HMRC’s Patent Box scheme has increased by 23% over the last five years, from £1.14 billion in 2017/18 to...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleThe legislation, which introduces a global minimum tax of at least 15% for multinational enterprises, aims to limit tax competition and ensure large c...
View articleThe upcoming tax changes in 2024 will significantly impact businesses and individuals in the UK. Accountants play a crucial role in helping clients na...
View articleAccountants must stay vigilant, adapt their tax strategies to evolving regulations, prioritize transparency, and foster collaboration with tax authori...
View articleAs the government prepares for re-election, PM Sunak promises to control spending in order to bring forth tax cuts next year Read More...
View articleThe Office for National Statistics revealed that the UK economy shrank by 0.3% in March after the economy grew by 0.1% in the previous three months Re...
View articleAs the Spring Budget approaches, dissenters of the UK government’s increasingly complex contractor legislation are baying for change. HMRC has already...
View article