Brussels, 29th October 2004
The European Commission has presented a proposal to simplify current Value Added Tax (VAT) compliance obligations to help cross-border traders who supply goods and services to other EU Member States. In particular the proposal would provide for a “one-stop-shop” system whereby a trader could fulfil all his VAT obligations for EU-wide activities in the Member State in which he is established. This system would allow traders to use a single VAT number for all supplies made throughout the EU and to make VAT declarations to a single electronic portal that would then be submitted automatically to the different Member States to which the trader supplies goods or services. The proposal also contains five other simplification measures. Studies including the Commission's European Tax Survey (see IP/04/1091) have demonstrated that VAT obligations are at present extremely burdensome and costly for cross-border activity. It takes into account opinions expressed during a public consultation held earlier this year (see IP/04/654).
"The European Council has identified the reduction of the administrative burden on business as an important element for fostering economic growth" said Frits Bolkestein, Commissioner for the Internal Market and Taxation. "This proposal is a valuable contribution towards that objective".
Simplification of VAT obligations related to cross border activities
The proposal contains six elements designed to facilitate VAT compliance requirements for traders that are not established in Member States into which they supply goods or services.
For the public
consultation on the one-stop-shop project see
For the proposal for a Council Directive to simplify value added tax obligations see http://ec.europa.eu/taxation_customs/whatsnew.htm
See also MEMO/04/249