Proposal for a standard EU VAT return from 1 January 2017

On 23 October 2013 the European Commission published its proposal for a standard EU VAT return. With the proposal, the Commission aims to ease the administrative burdens for companies and to contribute to creating a more efficient and fraud-proof VAT system. If this proposal is adopted, all businesses will have to adjust their systems. Standardisation should lead to a decrease of the overall administrative burden.

The standard VAT return should replace the currently existing national VAT returns of the EU member states from 1 January 2017. The proposed standard VAT return will have only 5 compulsory boxes for taxpayers to fill in. These will be: chargeable VAT, deductible VAT, net VAT amount (payable or receivable), total value of input transactions and total value of output transactions. However, Member States are given leeway to include a number of additional standardised elements, up to a maximum of 26 (5 compulsory and 21 optional) information boxes, covering, for example, the split between tax rates or details of cross-border transactions. The proposal also encourages electronic filing.

The proposed declaration period is one month with an optional quarterly period for small businesses (under € 2 million annual turnover) with VAT being due and paid by the end of the month following the VAT return period. Member States may allow longer periods not exceeding one year.

Via Proposal for a standard EU VAT return from 1 January 2017 | Kelvin Hulsebos.

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