Deducting VAT in EU VAT returns: complexity of rules; varying application by member states; partial deductibility; timings of deductions; and administrative obligations In a crowded field of complexity, VAT deductibility is most challenging area of EU (and global!) compliance. The premise of VAT neutrality, businesses
The €71 billion issue: EC progressing talks to reform VAT relief on donations of goods The European Environmental Bureau estimated €71 billion of unsold electronics and clothing are destroyed each year in the EU. This is unsold goods dumped into landfill because this is cheaper
Annual VAT registration thresholds and Intrastat dispatches & arrivals The table below provides the latest European VAT registration thresholds for resident and non-resident (foreign) businesses, plus Intrastat reporting threshold. The EU plans 2025 VAT registration threshold equivalence for SME taxpayers resident in other EU states.
2035 VAT in the Digital Age requires states with existing domestic e-invoicing to harmonise The latest draft of EU VAT in the Digital Age required member states with existing domestic B2B and B2C e-invoicing and digital reporting requirements to adapt their regimes by January 2035
Parliament comments on EC IOSS threshold removal proposal The European Parliament has produced a briefing on the European Commissions proposals for e-commerce import VAT reforms. This includes: Removal of IOSS €150 threshold reporting limit Extend deemed supplier obligations for marketplaces facilitating consignments exceeding €150 Removal
European Commission issues evaluation of voucher VAT rules The European Commission (EC) has issued its review of the application of VAT rules on the use of vouchers across the 27 member states. This follows the introduction of harmonisation VAT voucher rules in January 2019. The
The EU is undertaking an extended program of reforms to its Value Added Tax regime. This commenced with the 2016 Tax Action Plan, containing over ten reforms included the later separated 1 July 2021 e-commerce VAT package and the new VAT in the Digital Age
Behavioural taxes may be too successful to generate EU own resources Constantly looking for ways to generate EU-level ‘own resources’, the European Commission is increasingly exploring behavioural taxes to diversify and grow its budget revenues. Behavioural taxes are levies designed to influence individuals’ and businesses’
Digital Certificate to replace paper version from 1 July 2026 The European Commission is proposed to amend the VAT Directive to allow for a digital VAT exemption certificate. There is already a paper exemption certificate available which will be replaced from 1 July 2026 with
New Council of EU president plays down expectations on quick agreement on ViDA reforms; deep political issue add to likely delays The incoming rotating president of the Council of the EU, Hungary, is set to make little progress in resolving last disagreements on the EU
