EU 2022 definitive VAT system in trouble?

Grand plan may now fall to side as VAT in the Digital Age reforms progress

The proposed grand solution to tackle over €50billion in EU VAT fraud, the Definitive VAT System, is in trouble.  The plan to switch from an origin to destination-based VAT on cross-border B2B transaction has zero chance of meeting the 2022 launch date, and EU member states are queuing-up to lodge reasons to kick it into the long grass.

The focus may well now have already switched to EU VAT in the Digital Age proposals which includes a strand around harmonised transaction-based reporting across the member states. This originated from the 2020 Tax Package measures for a fairer and more efficient EU tax regime.

Source vatcalc

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