British businesses could be hit with a ‘complex and disproportionate burden’
if a package of value added tax reforms is approved by Europe’s finance
Proposals before the Economic and Financial Affairs Council could mean that
telecommunications companies, satellite broadcasters and digital service
providers would face a levy in the country where services are consumed, instead
of where the company is based.
The proposal is intended to prevent distortions which have allowed online
businesses to flock countries with a lower VAT rate, such as Luxembourg.
KPMG warned that the VAT package will create administrative problems for
businesses supplying services to customers across the continent, possibly moving
the number of tax filings from one to 27 as they comply with multiple
jurisdictions, the FT reported.
KPMG said there is currently no clarity as to how taxpayers ought to apply
the rules to identify place of consumption and no provisions to counter the risk
of multiple claims from member states.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states