- US multinationals need to adjust VAT compliance due to EU VAT reforms and mandatory e-invoicing.
- VAT impacts US companies internationally, with potential overpayments reclaimable as VAT refunds.
- Changes aim to combat VAT fraud, with mandatory e-invoicing by July 2030.
- VAT is a burden for end customers, not businesses, and is collected at each supply chain stage.
- Mismanagement in the EU can lead to up to 27 percent of VAT paid becoming a sunk cost.
- VAT fraud resulted in significant losses, prompting reforms and e-invoicing adoption in several EU countries.
- E-invoicing enhances transparency and compliance but may increase audits and enforcement.
- Place-of-supply rules determine VAT rates, with nuances for cross-border transactions and online platforms.
Source: news.bloombergtax.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.
