EC considers VAT changes
The European Commission is proposing a significant shake-up of the manner in which value added tax is levied when customers purchase goods.
The change would mean that, as for goods, taxation in most cases would be switched from the place where the service supplier is based to the location of the customer.
There would, however, be exceptions to avoid heavy administrative burdens in such services as immovable property and transport.
Brussels said that there would have to be an extension of the electronic ‘VAT Information Exchange System’ which allows tax authorities to verify a VAT number provided by a trader.