- EU VAT Expert Group recognizes the need for significant changes in EU VAT rules to support a functional internal market that promotes sustainable growth and competitiveness
- The EU Commission requested the VAT Expert Group’s views on short and long-term changes needed in the VAT system
- The VAT Expert Group, consisting of members from business organizations, advisors, and academia, compiled their recommendations and presented them to the EU Commission on December 13
- The report will contribute to the action plan of the newly appointed EU Commission and will be discussed with VAT authorities and other stakeholders
- The report emphasizes building on the EU reform VAT in the digital age, ViDA, highlighting the importance of successful implementation which requires ongoing consultation with businesses, clear guidance, and appropriate implementation timelines
- Digital real-time reporting and mandatory e-invoicing are part of ViDA, requiring careful and secure handling of collected data by member states
- The report mentions the need for a thorough evaluation of existing regulations to ensure data is reported only once and to reduce regulatory burdens
- Long-term vision for 2050 and beyond suggests a fundamentally reformed VAT system focusing on simplicity, neutrality, and revenue security through improved administrative efficiency
- Short-term goals for 2025 and beyond include addressing rules that hinder sustainability, modernizing exemptions, adapting to new business models, and improving dispute resolution mechanisms
- Swedish Business Federation participated in the VAT Expert Group’s work and highlights the importance of the proposals, noting the lack of broad public debate on the current inefficiencies of the VAT system
Source: svensktnaringsliv.se
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.
