- EU member states control input VAT deductibility, hindering full single EU VAT return
- Proposal to create a ‘full OSS’ single VAT return after ViDA
- Pan-European OSS return currently only allows declaration of sales, not input VAT deductions
- Member states view deductibility as route for VAT fraud and cash flow manipulation
- Challenges in incorporating varying national rules on deductibility into pan-EU scheme
- Repayment of VAT return credits and variations on capital goods pose harmonization challenges
- Conflicting requirements for evidencing right to deduct, such as VAT invoice and reverse charge application
- VAT Groups allow for voluntary single VAT registration, but further complexities may arise
Source: vatcalc.com
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.
