European Commission prepares major amendments to the current European VAT system

EC prepares amendments to the VAT system

In a recent press release, the European Commission announced a new set of proposals which aim to make major amendments to the current VAT system applicable in the European Union (EU), the main purposes being to reduce VAT losses of over EUR 150 billion, representing amounts which are not collected by Member States.

Ramona Jurubiță

Country Managing Partner

KPMG in Romania


The main amendments involve changing the taxation rules for intra-Community transactions carried out by taxable persons.  Consequently, intra-Community supplies of goods will be charged according to the principle of the “destination state”, which means that they will be subject to taxation using the VAT rate applicable in the Member State where the buyer is established, and the supplier will be the entity in charge of collecting and paying the related VAT.

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