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
First phase of EC estimate of losses due to missing trader intracommunity report The European Commission has published the first phase report on its attempt to quantify the value of missing trader intra-community VAT fraud. This involves criminals initiating declaring zero-rating on sales of goods
2021 estimate of lost EU VAT shows €38bn improvement largely due improved measures Most EU Member States made progress in the enforcement of Value-Added Tax (VAT) compliance in 2021, according to the new 2023 VAT Gap report released by the European Commission today. The annual
EU’s Directorate-General Taxation and Customs (DG TAXUD) has summarised its top reforms and ongoing work around the EU’s VAT regime, customs and related areas in its Management Plan 2023 Key issues DG TAXUD is looking to progress includes: Agreement of the 3-pillars of EU VAT in
The UK 2020/21 VAT Gap was £9billion, down from £12.5 billion as COVID-19 deferred VAT scheme unwinds The difference between the UK expected and actual VAT reveipts has shrunk according to the UK’s HMRC from 8.6% to 7% – which equates to £9 billion. This
Legislator endorses continuation of anti-VAT fraud measure and Quick Reaction Mechanism until 31 December 2025 The European Union Parliament has voted to retain the VAT reverse charge mechanism to help reduce the VAT Gap – amount of uncollected EU VAT. The reverse charge is an
Periodic listings of VAT sales and purchases to support VAT returns in fight against fraud Whilst the EU VAT Gap has started to reduce, tax authorities are anxious to speed-up the collections of missing VAT – both via errors and fraud. For over a decade, they have
EC finds most countries fail to implement all best practices; Finland and Sweden top of the class The European Commission has reviewed the Value Added Tax registration, collection and auditing processes and standards of member states and the UK, and find most tax authorities’ below
Sharing best practices on tax administration and collections to reduce missing VAT The European Commission is developing its VAT Gap Initiative in the third quarter of 2022 to help exchange ideas between EU member states’ tax administrations to help close the EU VAT Gap. This
Live retail reporting of VAT transactions to cut fraud In an effort to close the VAT Gap of missing tax revenues many European countries have introduced VAT e-registers in traditional retail and online e-commerce. These provide real-time or batch automated reports to the tax authorities of
