The tax environment will change substantially in near future, and this especially applies to the ‘world of VAT’.
In October 2017, the European Commission has launched its proposal for one of the largest VAT reform in a quarter of a century (so-called EU Action Plan on VAT). The VAT proposal of the European Commission should improve and modernize the system for governments and businesses and will mainly affect the companies working on a cross border level. The implications for businesses are significant, complex and far-reaching.
The main goal of the EU VAT proposal is to tackle cross-border VAT fraud. As part of the EU Action Plan on VAT, on 1 January 2020 substantial amendments will come into force (‘quick fixes’).
This requires preparations for businesses in terms of:
- understanding of the new rules
- identifying the impacts on the respective business models
- establishing processes in order to comply with these regulations
- negotiating with business partners (i.e. suppliers, customers) about new or amended contracts.
As an outcome of the EU action plan on VAT, the quick fixes will come into force from 1 January 2020 onwards. The rules will potentially influence business decisions, may result in amended supply chains and will in any case result in additional or amended processes. The year end is coming soon, and the amendments of the European VAT law are significant. So, there is not much time left for business to prepare.
The experts of Mazars’ Global VAT & Indirect Tax Group will share the upcoming changes and guide you through any obstacles. They also will highlight what needs to be done for businesses to be compliant with the new regulations.
Discuss with our experts what this would mean for your business model!