VAT is supposed to be a charge for the end-consumer. However, given the transaction-based calculation, “not having the VAT treatment right” may easily result in penalties that can impact the bottom line or create burning issues which can put business relations under high pressure.
Can minor mistakes result in material exposures?
One may wonder whether penalties expressed as a percentage of VAT for reverse charge errors which do not lead to underpayment of VAT are fair? And would such penalties pass the ultimate test of the European court of justice?
Source VATconsult
Latest Posts in "European Union"
- MEPs Urge Simpler EU Tax Rules and Unified Tax ID to Boost Competitiveness
- European Parliament Debates Digital Services Tax Versus VAT Gap Solutions in Interparliamentary Meeting
- Applications Open for EU Member States to Host New EU Customs Authority
- ECHR: VAT Assessments in Italmoda Case Are Not Criminal Penalties Under Article 7 ECHR
- CFE Calls for Fundamental Reform of EU VAT Rules for Travel and Tourism Sector
