The VAT has been and will be an important source of revenue for the EU. Due to the ongoing and intense reforms and changes that the economic system has suffered, the VAT system has become very complex.
Thus, the European Commission proposes the following fundamental changes to the current VAT system
Universal taxation of the sales of goods from one European country to another. VAT will be credited for cross-border trade between businesses. This is intended to sell the scales more easily due to the existence of one shot shop. Payments will be made through a single web portal according to their local rules and standards. The Member States will then proceed to pay the VAT. Furthermore, the destination principle is proposed where the total amount of the VAT is credited to the rate of that country. Something that is already being applied to online services. Simplification of pricing rules is also envisaged where vendors issue their own invoices even in intra-Community transactions. Thus, what is referred to as the “VIES” recapitulative statement is eliminated.
Finally, the European Commission’s legislative proposal will be sent to the Council and the European Parliament for consultation