EU to overhaul VAT system to slash fraud

The European Commission has proposed amendments to overhaul the EU VAT rules to reduce fraud. Fraud is estimated to cost the union about €50bn a year. The measures include:

Simplifying how goods are taxed: The cross-border trade of goods will be defined as a ‘single taxable supply’ to ensure that they are taxed in the member state where their journey ends.

Single portal: An online portal or one-stop-shop for all business-to-business (B2B) EU traders to sort out their VAT will be put in place. It will also be available to companies outside the EU.

Less red tape: Specific reporting obligations linked to the transitional VAT regime will no longer be needed for trade in goods. Further invoicing regarding EU trade will be governed by the rules of the member state of the seller.

Responsibility for VAT: The seller will charge the VAT due on a sale of goods to...