In an attempt to simplify the reporting burden for companies doing business across the EU, the European Commission presented a draft …
In an attempt to simplify the reporting burden for companies doing business across the EU, the European Commission presented a draft Directive for a standard EU VAT return in October 2013, with the hope of having it implemented by January 2017.
On Friday the 20th of June 2014, all EU member states reached political consensus on the proposed implementation of a standard EU VAT return for all of the 28 EU member states.
The Directive was put forward as the European Commission believe that a standardised VAT return would help reduce the amount of VAT that is undeclared, or incorrectly declared, and thereby would decrease the VAT gap.
The proposed VAT return design will include 5 compulsory information boxes for taxpayers to complete, with an additional 26 boxes for member states to choose from. The returns would then be submitted on a monthly basis for business above €2 billion and a quarterly basis for those below €2 billion.