This project had been announced in the Commission Communication on the VAT Strategy (COM (2003) 614 final of 20.10.2003) which identified simplification of tax obligations as one of the key lines of the future works. This simplification should mainly be carried out by more and more using electronic communication means between businesses and tax administrations as well as between Member States' tax administrations. The concept of a one-stop-shop is a key element in this context.
According to the present rules indeed, the place of supply of an operation determines the Member State where tax obligations (declaration, payment) have to be fulfilled.
A taxable person having activities in several Member States may therefore be confronted with tax obligations in several countries.
The Commission considers that a one-stop-shop could, in many cases, simplify tax obligations of Community traders having cross-border activities.
The aim of the consultation document was to explain the different aspects of a one-stop-shop mechanism and to collect feedback from interested parties, in view of making a legislative proposal before the end of 2004.