| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2013) 721 final (23.10.13) |
| Publication Date | 23/10/2013 |
| Content Type | Policy-making |
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The VAT system requires businesses to complete periodic VAT returns detailing information necessary for the payment and control of VAT and this can be especially complex when submitting VAT returns in different Member States. The complexity is the result of providing different information, the information not having harmonised definitions, the lack of good common guidance, different rules and procedures for the submission and corrections, and needing to use the national language. This all leads to an increase in burdens on business, reduced accuracy and timeliness of VAT declarations, and restricts cross-border trade. To address these problems the Commission sought stakeholder views on a standard VAT declaration through the consultation on the Green Paper on the Future of VAT. Positive replies from stakeholders led the Commission to include in the Communication on the Future of VAT a commitment to come forward with a proposal for a standard VAT declaration before the end of 2013. The proposal supports other Commission initiatives. The Action Programme for Reducing Administrative Burdens in the EU is helped by a high-level group, in place until October 2014, which advises the Commission on reducing administrative burdens linked to EU legislation. It focuses on SMEs and micro enterprises, as well as how to make Member State public administrations more efficient and responsive to the needs of stakeholders when implementing EU legislation. The standard VAT declaration fits well with these burden reduction aims. Building on the "Think Small First" principle from the Small Business Act by cutting "red tape" for SMEs is a key Commission aim. The recent Communication on 'Smart regulation - Responding to the needs of small and medium-sized enterprises' has highlighted, from an on-line survey of SMEs, the VAT Directive as an area of EU legislation most burdensome. The VAT declaration, in particular, is identified as an area where divergences constitute an obstacle to EU trade. This proposal aims to reduce burdens on all business, and particularly SMEs, and is highlighted in the Communication on Smart regulation. |
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| Source Link | Link to Main Source http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2013:721:FIN |
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| Subject Categories | Taxation |
| Countries / Regions | Europe |
