All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Death of the European VAT return

Avalara sponsored piece 320 x 215

The traditional periodic VAT return is headed for extinction. Avalara offer its country-by-country guide to how digital transaction reporting is sweeping through Europe.

Countries around Europe, anxious to close stubborn VAT revenue gaps running to €150 billion ($170.5 billion) per annum are rapidly imposing digital transaction reporting in its place.

The newest regimes include live VAT invoice and approval submissions to the tax authorities. Poland has already announced the scrapping of VAT returns in 2019, relying on monthly, detailed VAT transaction submissions instead.

This is placing huge pressures on businesses of all sizes to upgrade their accounting systems. But also to tighten their VAT determination processes since tax authorities will now have live access to taxable transactions ahead of any current month-end review and correction process. This puts businesses on the back-foot when tax authorities are able to check and calculate VAT liabilities in real-time rather than waiting on company-sanitised self-assessment returns.



Avalara’s latest digital VAT reporting guide provides an overview of the progress of the pioneering countries. Click here to download the guide.

more across site & bottom lb ros

More from across our site

The UN’s decision to seek a leadership role in global tax policy could be a crucial turning point but won’t be the end of the OECD, say tax experts.
The UN may be set to assume a global role in tax policy that would rival the OECD, while automakers lobby the US to change its tax rules on Chinese materials.
Companies including Valentino and EveryMatrix say the early adoption of EU public CbCR rules could boost transparency of local and foreign MNEs, despite the short notice.
ITR invites tax firms, in-house teams, and tax professionals to make submissions for the 2023 ITR Tax Awards in Asia-Pacific, Europe Middle East & Africa, and the Americas.
Tax authorities and customs are failing multinationals by creating uncertainty with contradictory assessment and guidance, say in-house tax directors.
The CJEU said the General Court erred in law when it ruled that both companies benefitted from Italian state aid.
An OECD report reveals multinationals have continued to shift profits to low-tax jurisdictions, reinforcing the case for strong multilateral action in response.
The UK government announced plans to increase taxes on oil and gas profits, while the Irish government considers its next move on tax reform.
War and COVID have highlighted companies’ unpreparedness to deal with sudden geo-political changes, say TP specialists.
A source who has seen the draft law said it brings clarity on intangibles and other areas of TP including tax planning.