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TAXATION: PUBLIC CONSULTATION ON VAT ONE-STOP-SHOP PROJECT.

The consultation paper proposes a single VAT number for a trader to cover all supplies made throughout the EU, with VAT declarations made to a single electronic portal, and submitted automatically to the different Member States into which the trader supplies goods or services. Studies have shown VAT obligations to be extremely burdensome for cross-border traders, who are often unfamiliar with the tax procedures and arrangements in different countries, and often also encounter language difficulties.

The paper considers an optional and fully electronic compliance scheme that would be open to every trader supplying goods or services that are subject to VAT. The scope of the scheme would be limited to supplies made by business to consumers (B2C).

The simplest way of reducing onerous compliance obligations for business-to-business (B2B) supplies would, in the Commission's view, be to change VAT rules so that the customer (if he is a trader) rather than the supplier would be responsible for paying the VAT on services supplied to him.

The B2C scheme would allow a trader to register only once, in the Member State where he is established, and to use a single VAT number for all B2C supplies made within the scope of the scheme. Payments would be made directly to the Member State of consumption, possibly with the help of financial intermediaries.

The consultation paper is available on our EISnet site at: www.eis.be > Recherche avancee > Reference= EURF;2870;204

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Publication:European Report
Article Type:Brief Article
Geographic Code:4E
Date:May 20, 2004
Words:238
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