EU: European Commission proposals to modernize and digitalize VAT system
A series of measures to modernize and digitalize the EU's value added tax system
A series of measures to modernize and digitalize the EU's value added tax system
The European Commission (EC) today proposed a series of measures to modernize and digitalize the EU's value added tax (VAT) system.
According to today’s EC release, the proposed measures are intended to make the EU’s VAT system work better for businesses and more resilient to fraud by embracing and promoting digitalization. In addition, the proposed measures are aimed at addressing challenges in the area of VAT raised by the development of the platform economy.
The proposed measures include:
- A move to real-time digital reporting based on e-invoicing for businesses that operate cross-border in the EU
- Updated VAT rules for passenger transport and short-term accommodation platforms
- The introduction of a single VAT registration across the EU
The proposals will be sent to the Council for agreement and to the European Parliament and the Economic and Social Committee for consultation.
The following KPMG member firms have prepared additional reports:
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