The European Commission has launched plans for the biggest reform of EU VAT rules in a quarter of a century.
The Commission proposes to fundamentally change the current VAT system by taxing sales of goods from one EU country to another in the same way as goods are sold within individual Member States. It will now seek agreement on four fundamental principles, or ‘cornerstones’ of a new definitive single EU VAT area.
By November 2017 the Commission will also propose a reform of VAT rates themselves consistent with the destination principle that will gradually replace the current arrangements for the taxation of trade between Member States.