A standard EU VAT return

A standard EU VAT return

The European Commission recently presented their draft Directive for a standard EU VAT return in October 2013, their goal for it to be implemented by January 2017.

On the 20th of June 2014, all EU member states reached political consensus on the proposed implementation of a standard EU VAT return for all of the 28 EU member states.

The Directive was put forward as the European Commission believe that a standardised VAT return will help reduce the amount of VAT that is undeclared, or incorrectly declared, and will thereby decrease the VAT gap.

The proposed VAT return will include 5 compulsory information boxes for taxpayers to complete, with an additional 26 boxes for member states to choose from. The returns are to be submitted on a monthly basis for business above €2 billion and a quarterly basis for those below €2 billion.