Introduction
- Document Reference: COM(2025) 45 final
- Date: 11 February 2025
- Context: Part of the broader initiative to enhance EU competitiveness and simplify regulations.
1. Simplification of VAT Rules
- Objective: Streamline VAT legislation to reduce complexity for businesses and enhance compliance.
- Focus on Small and Medium-sized Enterprises (SMEs): Special emphasis on easing VAT compliance burdens for SMEs.
2. VAT Digitalization
- Implementation of Digital Tools: Promote the use of digital tools to facilitate VAT collection and compliance.
- Enhancing Efficiency: Aim to reduce administrative burdens through digitalization of VAT processes.
3. Cross-Border VAT Transactions
- Simplifying Cross-Border Trade: Proposals to improve the VAT framework for cross-border transactions, making it easier for businesses to operate across EU borders.
- Reducing Barriers: Address issues that currently hinder cross-border trade within the single market.
4. VAT Refunds
- Streamlining VAT Refund Processes: Propose measures to simplify the VAT refund process for businesses operating in multiple EU countries.
- Improving Cash Flow: Enhance efficiency in VAT refunds to support business cash flow, particularly for SMEs.
5. Customs Procedures
- Facilitating Customs Processes: Propose simplifications in customs procedures to reduce delays and costs for businesses.
- Harmonization of Customs Rules: Work towards a more harmonized approach to customs regulations across EU Member States to facilitate smoother trade.
6. Customs Digitalization
- Digital Solutions: Promote the development and implementation of digital solutions for customs declarations and procedures.
- Enhancing Transparency: Use technology to improve transparency and efficiency in customs operations.
7. Stakeholder Engagement
- Consultation with Businesses: Engage with businesses and stakeholders to identify pain points in the current VAT and customs systems.
- Feedback Mechanisms: Establish channels for continuous feedback to improve VAT and customs regulations.
Conclusion The VAT and customs proposals in the European Commission’s 2025 work programme focus on simplifying regulations, enhancing digitalization, and improving efficiency in VAT compliance and customs processes. These initiatives aim to support businesses, especially SMEs, in navigating the complexities of the EU’s tax and customs landscape, ultimately fostering a more competitive and resilient European economy.
Source Commission.europa.eu
