The global landscape for indirect taxes continues to change rapidly. Indirect taxes — and VAT in particular — are becoming many jurisdictions’ most important instruments for raising tax revenues. However, current EU VAT legislation is still based on a temporary system which does not account for current logistic and technical developments. In order to simplify and adapt the system to current demands, and to avoid VAT fraud (which is estimated to be over USD 50 billion yearly), the EU introduced the VAT-action plan. This plan will build a more robust system and will result in significant changes as of 2020 and 2021.
Source: bakermckenzie.com
