On 15 July 2020, the European Commission (EC) adopted a new Tax Package, intended to increase tax compliance while reducing administrative burden on businesses. The Tax Package contains a number of proposals related to VAT, of which three in particular stand out:
A single EU VAT registration for taxpayers;
Modernized VAT reporting obligations; and
Facilitated tracking of cross-border transactions.
All three proposals are in line with recent attempts by the EC to overhaul and modernize the EU’s VAT system, and all three could have far-reaching implications for EU taxpayers.
Source: SOVOS
