Business, Freight News

Brussels to overhaul VAT rules

[ May 29, 2018   //   ]

The European Commission proposed detailed technical amendments to VAT rules on 25 May to make the system more fraud-resilient. It would end the 25 year old ‘transitional’ regime  by creating a single EU VAT area to help to shut down the estimated €50 billion in fraud a year. Under the current system, trade in goods between businesses is split between a VAT-exempt sale in the member state of origin and a taxed acquisition in the member state of destination. However, the new rules will define the cross-border trade of goods as a ‘single taxable supply’ with goods taxed in the member state where the transport of the goods ends.