EU Publishes Guidance for Implementing VAT Overhaul Law

The European Commission provided guidance for countries Wednesday on implementing an overhaul of the way value-added taxes are applied across the bloc.

A commission document outlines potential risks in implementation, and recommends suggestions for mitigating them.

For example, the commission proposed meetings and a “step-by-step” implementation plan to track the progress of the commission and national tax authorities’ updates to their IT systems.

Member countries without capable IT systems to carry out digitalized VAT reporting could cause delays for other countries trying to receive cross-border transaction information, the document said.

The commission stated legal action could be taken against ...