The global landscape for indirect taxes continues to change rapidly. Indirect taxes — and VAT in particular — are becoming many jurisdictions' most important instruments for raising tax revenues. However, current EU VAT legislation is still based on a temporary system which does not account for current logistic and technical developments. In order to simplify and adapt the system to current demands, and to avoid VAT fraud (which is estimated to be over USD 50 billion yearly), the EU introduced the VAT-action plan. This plan will build a more robust system and will result in significant changes as of 2020 and 2021.
In order to work towards this plan on such a short notice, the European Commission has developed four 'Quick Fixes' to improve the day-to-day functioning of the current VAT system. These four 'Quick Fixes' will come into force as of 1 January 2020. This creates new opportunities as well as challenges within a short period for businesses trading goods particularly within the EU. In this publication you can find an overview of the important changes and challenges which will impact businesses throughout the EU.