- France’s National Rally has proposed a new VAT collection mechanism in its 2027 presidential economic programme, aiming to raise €18 billion in extra annual revenue.
- The proposal is not detailed, but appears to involve VAT collection at source, potentially using a split payment model.
- Under split payment, the VAT portion of a customer payment would be separated from the supplier’s proceeds and sent directly to a designated account or the tax authorities.
- The stated policy goal is to reduce VAT fraud, especially in online commerce, possibly by involving payment service providers in VAT remittance.
Source: vatcalc.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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