Taxation and Customs Union

Action Plan on VAT

The future of VAT

On 7 April 2016 the Commission adopted an Action Plan on VAT – Towards a single EU VAT area.

Following the adoption of this Action Plan, the European Commission has made a series of proposals to work towards its completion.


25 May 2018 - Technical amendments for a definitive VAT system

Proposal on the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States 

25 May 2018 - Reverse charge mechanism

Proposal on the period of application of the optional reverse charge mechanism and the Quick Reaction Mechanism against VAT fraud 

18 January 2018 – VAT Rates

Proposal to introduce more flexibility for Member States to change the VAT rates they apply to different products.

18 January 2018 - Simplified VAT rules for SMEs

Proposal for new simplification rules to help reduce VAT compliance cost for small businesses.

30 November 2017 – Administrative Cooperation between Member States
Proposal for new rules on administrative cooperation between Member States' administrations in order to fight VAT fraud more efficiently.

4 October 2017 - Definitive VAT system
Proposal of a series of fundamental principles and key reforms for the EU's VAT area.

21 December 2016 - Generalised reverse charge mechanism
Proposal for a COUNCIL DIRECTIVE as regards the temporary application of a generalised reverse charge mechanism in relation to supplies of goods and services above a certain threshold.


1 December 2016  - VAT on cross-border e-commerce
As part of the Digital Single Market strategy a legislative proposal was made to modernise and simplify VAT for cross-border e-commerce.


action plan

Other documents


Background information