- Tax fragmentation remains a major obstacle to the EU Single Market, causing administrative complexity, legal uncertainty, and increased costs for cross-border businesses.
- The most significant tax barrier is VAT, due to varying administrative procedures and requirements across member states, despite a harmonised framework.
- Legal uncertainty, duplicative reporting, and divergent interpretations of EU rules further complicate cross-border operations.
- Digitalisation efforts like the One-Stop Shop (ViDA) help but do not fully resolve underlying VAT fragmentation, as national procedures and compliance burdens persist.
Source: innovatetax.com
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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