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EU: Implementation of VAT action plan in January 2019

EU: Implementation of VAT action plan in January 2019

Implementation of a value added tax (VAT) action plan in the European Union is set to start in January 2019. There are some considerations for companies before implementation starts in January 2019.

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The VAT action plan aims at replacing the transitional regime of intra-community supplies introduced in 1992, and includes a series of measures to eliminate the VAT obstacles concerning cross-border e-commerce as part of the digital single market strategy. 

A definitive VAT system is intended to assist companies to attain the benefits of the single market and compete on a global stage. The reforms are set to cut the “VAT gap” by an estimated 80%, and are expected to save businesses approximately €1 billion in administrative costs currently associated with cross-border trade in the EU. The European Commission today released a report about the effects of the VAT gap and a list of “frequently asked questions” (FAQs) about the VAT gap.

 

Read a September 2018 report prepared by the KPMG member firm in Switzerland

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