- The EU single market faces significant VAT obstacles, mainly due to tax fragmentation and lack of harmonization across member states.
- Businesses encounter legal uncertainty, complex reporting systems, and inconsistent VAT registration procedures when trading cross-border.
- VAT remains the most frequently reported tax obstacle, despite efforts at harmonization.
- The upcoming VAT One-Stop Shop (OSS) expansion aims to reduce multiple VAT registrations, but some businesses will still face administrative burdens.
- The European Commission plans to address these issues with an omnibus tax package and a recast of the Directive on Administrative Cooperation in 2026.
Source: vatabout.com
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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