- New EU rules introduced a system of enhanced transparency to crack down on VAT fraud.
- Payment service providers are now required to monitor and transmit information on cross-border payments to national tax authorities.
- The data will be stored in a centralized European database for cross-checking.
- These rules are aimed at combating VAT fraud in e-commerce, which costs EU governments billions in lost revenues annually.
- E-commerce businesses will face greater scrutiny, and it is essential for them to accurately determine and remit taxes in compliance with local regulations.
- It is recommended for businesses to invest in an automated tax solution to ensure compliance.
Source Innovate Tax
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