Businesses and the tax attache from the Swedish Permanent Representation, Johan Lundqvist, shared concerns about the consequences of the ‘VAT in the Digital Age’ (‘ViDA’) initiative at an event organised by Business Europe on 18 April.
Discussions in the Council mainly revolve around technical details, including digital reporting requirements. There is a consensus e-invoicing is the way forward, although it is challenging for Member States. They have their national reporting systems, and harmonisation could change these systems, which they want to keep the same. “They spent money and time to create them,” Mr. Lundqvist justified.
For SMEs, some Member States reportedly argue VAT is an everyday tax that should be easy to apply. “Real-time or near-real-time reporting puts extreme pressure on this,” Mr. Lundqvist explained.
For him, ensuring that SMEs are guided and the system encourages voluntary compliance is vital. This involves transparent local legislation, harmonisation of the treatment of dates and places of taxation, and guidance when doubts arise in a declaration
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