The EC’s Communication on the VAT Green Paper

In December 2011 the European Commission published a Communication responding to the 1 700 responses it had received to its Green Paper of 1 December 2010 on the future of VAT. This article summarises the EC's main proposals both for the short and the medium term and where we are likely to see real change.

Simplification

Destination System: The EC has concluded that there is a strong and urgent call for simplification of the VAT system and the reduction of administrative costs caused by divergent practices across the EU. It considers that simplification would cause an increase in intra-EU trade and revenues.

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