Standard VAT Return: Easing life for businesses
The European Commissione proposed a new standard VAT return, which can cut costs for EU businesses by up to €15 billion a year.
Algirdas Šemeta, Commissioner for Taxation, said: "The standard VAT return presents a win-win situation. Businesses will enjoy simpler procedures, reduced costs and less red tape. Governments will have a new tool to facilitate VAT compliance, which should increase the revenues they collect. Today's proposal therefore supports both our commitment to a business-friendly Single Market and our drive to improve tax compliance in the EU."
Currently, the information requested, the format of national forms and the reporting deadlines vary considerably from one Member State to the next. This makes VAT returns for cross-border businesses a complex, costly and cumbersome procedure.
The standard VAT return simplifies the information that businesses will have to provide to tax authorities. The declaration will have only 5 compulsory boxes for taxpayers to fill in. Member States are given leeway to request a number of additional standardised elements, up to a maximum of 26 information boxes.