- The VAT Expert Group of the European Commission released a report on 16 December 2024 discussing the future of VAT post-ViDA package
- The report explores the long-term prospects of an EU VAT system and examines the political and technological landscape that could influence future VAT systems
- VAT is considered essential for the foreseeable future due to its role in promoting growth, raising government revenue, and providing a stable tax base
- The report envisions a restructured VAT system by 2050, aiming to reduce complexities and administrative burdens
- Key objectives for a future VAT system include simplifying compliance, ensuring neutrality across the EU, and enhancing administrative efficiency to protect revenues
- Proposed changes include updating the ViDA framework, aligning VAT rules with modern business models, and incorporating sustainability goals
- Refreshing paused initiatives such as VAT reforms for financial and insurance services and the VAT and tourism package is suggested
- The report outlines a gradual implementation of these changes from 2025 to 2045 to integrate smoothly into the EU’s legal and administrative frameworks
Source: etaf.tax
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.
