Guide to EU VAT Reforms 2020 – 2025
Date published
June 19, 2020
Company
Avalara
The current EU VAT regime, contained within the Council Directive 2006/112/EC (the ‘EU VAT Directive’), has remained largely unchanged since the inception of the EU Single Market in 1993.
Since then there has been an explosion in ecommerce, reaching over €550 billion per annum in sales across the EU, of which €100 billion is cross-border. There has also been a rise in VAT fraud, with gangs exploiting the current zero VAT rating of intra-community supplies between businesses.
These two forces have led to an estimated loss of €55 billion per annum in VAT.
In order to update VAT legislation to close loopholes allowing VAT fraud, as well as meeting complex demands for tracking ecommerce sales and VAT accountability, the EU Commission has proposed a range of reforms to the EU VAT Directive.
This guide details all of the proposed changes, their progress and what businesses need to know and do to be prepared.
What’s inside:
- Background to the reforms
- How the changes affect ecommerce businesses
- Year by year breakdown of the changes
- Changes to the One-Stop-Shop (OSS) single EU VAT returns
- Changes to the VAT Reporting Regulations
And more…