The European Commission (EC) has proposed a new set of rules that is meant to introduce efficiencies into long-standing current practices.
The new principles include:
- One Stop Shop
- Destination principle, with VAT on goods collected by the selling State and transferred to the State of destination
- Charging VAT on cross-border trade
- “Certified Taxable Person” certification allowing simpler EU principles to apply
- Quick fixes, including storing goods in another Member State
The EY Global Tax Alert is included for reference, which thereby includes links to the related proposals.
This proposal is significant for all businesses trading in the EU, and its principles should be reviewed to enable proactive planning.