The European Commission, as part of its VAT in the Digital Age project (ViDA), is proposing to modify reverse charge rules for non-established suppliers. These rules are currently optional for Member States, which has resulted in patchwork application across the EU. The modifications are intended to harmonize these rules across member states. Although the intent is to simplify the administration of VAT, the proposal may result in new obligations for certain taxpayers.
Let’s review the current reverse charge rules and assess what the proposed changes could mean for businesses conducting trade in the EU.
Source: SOVOS
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