European lawmakers approved a plan to change the region’s value-added tax regime to one under which goods would be taxed where they are sold.
The European Parliament Feb. 12 approved draft legislation that would transition the EU VAT regime to a destination-based system by a vote of 493 in favor, 48 against and 137 abstentions.
The proposed VAT system would apply to cross-border sales of goods made between businesses in the EU. The supply of goods would be taxable in the country where the transport of goods to the customer ends.
Currently, the EU VAT system uses a split ...