04/10/2023
The current VAT system in the EU has been in place for 30 years. In the era of digitalization, new services and goods, new types of activities, new business structures have appeared. It's time to introduce new European VAT rules.
The European Commission said that in 2020 the EU lost 93 billion EUR of VAT, while the economy of the countries and the entire EU needs constant and sustainable income. And companies, who would like to operate in the EU Single Market, are now forced to register in 27 VAT systems, which creates an increase in bureaucracy and financial costs. Therefore, the European Commission has been setting out the following proposals:
1️⃣ All EU countries will be required to introduce electronic invoicing system for domestic business transactions based on a single European standard.
2️⃣ real-time reporting with electronic invoices and a unified transaction system. The use of such a platform will help to easily control VAT fees and conduct an active anti-fraud campaign.
3️⃣ introduction of a unified VAT registration system in the EU. Thanks to this initiative, companies that would like to operate in the EU Single Market are exempted from registration in other EU member states. It will be enough for them to register in only one EU country.
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