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A new VAT return has been proposed for the European Union (EU) to be a standard across all members, in an effort to cut red-tape for firms, ease tax compliance and improve the efficiency of tax authorities.
The European Commission’s plan envisages a uniform set of requirements for businesses when filing VAT returns, regardless of the member state in which they do it.
The standard return, which would replace its national equivalents, would ensure firms are asked for the same basic information across the EU, within identical deadlines.
A new VAT return has been proposed for the European Union (EU) to be a standard across all members, in an effort to cut red-tape for firms, ease tax compliance and improve the efficiency of tax authorities.
The European Commission’s plan envisages a uniform set of requirements for businesses when filing VAT returns, regardless of the member state in which they do it.
The standard return, which would replace its national equivalents, would ensure firms are asked for the same basic information across the EU, within identical deadlines.
The new VAT return would feature five compulsory boxes for taxpayers to complete, and member states would be able to add additional standardised elements, up to a maximum of 26. Some member states currently require up to 100 information boxes to be completed.
Most businesses would be expected to file the proposed return on a monthly basis, although micro-enterprises would make only quarterly submissions.
The obligation to put forward a recapitulative yearly VAT report, demanded by some member states, would be abolished – and firms would be able to submit the returns electronically throughout the EU.
