VAT Directive – Reform plan: European Commission proposes to abolish zero rate on cross-border purchases

de Victor Bratu | 9.10.2017 .

Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, Taxation and Customs, announced on Wednesday in Brussels the proposals of the European Commission for the European VAT rules.

According to the Commission’s announcement, Brussels proposes “a fundamental change in the current VAT rules, a change aimed at taxing the sales of goods from one EU country to another in the same way that goods are sold within the member states.”

Commissioner Moscovici has announced that he will try to obtain the agreement of the member states on four principles on which a “single European area” to function in the future in the field of the value added tax:

Combating fraud.

VAT will be charged for cross-border trade between enterprises. Currently, cross-border trade is exempted from the VAT, generating a loophole that unscrupulous companies use to collect VAT, then disappear without sending the money to the government.

One Stop Shop.

It will be more simple for companies that sell goods across borders to meet their VAT obligations in the “One Stop Shop” system. Traders will be able to make statements and payments using a single online portal in their own language and according to the same administrative rules and templates as in their country of origin. Member states will pay their VAT directly, as it is already the case for all sales of electronic services.

More consistency.

A change to the “destination” principle, according to which the final VAT amount is always paid to the member state where the end consumer is located and is charged at the rate set by that member state. This was an old commitment of the European Commission, supported by the member states. The mechanism already works for the electronic services sales.

Less bureaucracy.

Simplifying the billing rules, which would allow vendors to issue invoices in accordance with their own country rules even when transactions are cross-border. Companies will no longer need to prepare a list of cross-border transactions for their tax authority (the so-called “recapitulative statement”).

Proposals made by Pierre Moscovici also introduce the notion of “Certified taxable person” – a category of trusted business that will benefit from much more simple and less time-consuming rules.

Commissioner Moscovici also spoke, without further elaborating, about some “quick solutions” that would come into force in 2019.

Quick solutions, more precisely short-term measures, have been explicitly requested by member states to improve the day-to-day functioning of the current VAT system until all member states have completed and approved the new VAT system.

According to the procedures, the detailed legislative proposal will be forwarded for analysis to the member states through the European Council and the European Parliament for consultation. Following this process, the Commission will present in 2018 the detailed draft of the “VAT Directive” reform issued in 2006.

Proposals announced by Commissioner Moscovici occur a few days after his directorate published a study on the VAT gap at the EU level, according to which Romania was in 2015 the member state with the highest gap between the VAT supposed to be collected and the VAT effectively collected.

The situation was similar in 2014.

Publicat la data de 9.10.2017 .

Lasa un comentariu


SIMILAR ARTICLES

Adrian N Ionescu

Ministry of Finance has sold euro bonds worth one billion euros on foreign market

The Ministry of Finance (MFP) placed euro bonds worth EUR 1 billion on the foreign market by reopening the issue with the maturity of 10 years launched in April this year The issue has been placed with a 2375% coupon at a yield of 2,114%, lower than the one of the initial issue in April (2411%), following "the decrease of the related margin of Romania’s credit risk to the lowest level for ...
Read more »

Adrian N Ionescu

European Commission’s announcement to Government and Parliament: Gas transactions market cannot be monopolized by OPCOM

Romania risks the infringement procedure if the Parliament adopts definitive amendments to the Emergency Ordinance 64/2017 on the natural gas market, which provides for the trading of 70% of its volume only on the state-controlled OPCOM market The punishable amendments, recently approved by the Chamber of Deputies' Committee for Industries, could violate the fundamental freedoms laid down in ...
Read more »

Adrian N Ionescu

Ford launches production of EcoSport in Craiova. Total investment in Romania reaches over EUR 1.2 billion

Ford officially launched the production of the EcoSport SUV at the plant in Craiova, raising total investments in Romania to about EUR 12 billion, since the takeover of the factory in 2008 The number of employees will increase by nearly 1,700 to 4,300 people by the end of the year, exceeding for the first time the number of employees in the moment of the takeover Ford plant in Craiova will ...
Read more »

Adrian N Ionescu

ANAF has repealed procedure for cancellation of VAT code for inactive companies

An order by the ANAF President amends the regulations for cancelling the registration for VAT purposes, respectively repeals the procedure for the cancellation of the VAT code for the inactive companies The provisions in question are included in OpANAF 2899/2017 on approving the procedure for the ex-officio change of the VAT related tax vector, as well as the template and content of some ...
Read more »

Adrian N Ionescu

Investment of the poor: MFP sells one-lei treasury bonds to population and money will be blocked until maturity

The Ministry of Public Finance (MFP) wants to raise money to the budget, leu by leu and says that treasury bills, whose issues have already been announced, will have a nominal value of 1 RON The amount is a real premiere The financial instruments will be issued quarterly, on short terms, through the State Treasury's operating units, and will not be listed on the stock exchange, which means ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more