Death of the European VAT return

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

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 & shared bottom lb ros

More from across our site

As ITR data reveals that 2025 saw more than double the amount of private client hires than 2024, it seems firms are jostling for position
The US multinational paid 20% more tax in 2025 than 2024, it said; in other news, more than 25,000 HMRC staff have been upskilled on AI
Belt and Road Initiative countries face tax incentive conundrums due to pillar two, but relatively few countries would seek to scrap the project, ITR has heard
Hany Elnaggar examines how the OECD’s global minimum tax is reshaping the GCC’s investment incentive landscape, shifting the region from rate-based competition toward substance-driven economic positioning
The acquisition of a two-partner practice from Stephenson Harwood means that Charles Russell Speechlys has the largest private client team in Asia, the firm claimed
Complex and constantly shifting rules on global mobility mean ‘the risk is too great’ for staff to work abroad on personal time, EY’s Maureen Flood tells ITR
While it’s great that the OECD is alive to multinationals’ fears of being caught in a compliance trap, the ‘common understanding’ illustrates a worrying lack of readiness
Rising demand for specialist expertise has fuelled the growth in tax partner headcounts, Cain Dwyer found; in other news, Switzerland has been urged to reconsider pillar two
An OECD report on the taxation of the digital economy is expected by the end of 2026, according to the group of nations
Trophy assets are evolving from personal indulgences to structured investments, prompting family offices to prioritise tax efficiency, governance discipline, and cross-border compliance
Gift this article