Online business Toolkit

Europe plans VAT integration

Kable

Published: 01 Nov 2004 15:14 GMT

The EU is to create a central electronic portal for VAT declarations, according to proposals drawn up by the European Commission. The plans, issued on Friday, are part of an attempt to "simplify" the VAT system across Europe.

Along with the portal plan is a proposal to allow traders from one country to be identified by a single VAT number across the EU. The portal is also aimed to improve the existing process, so that any VAT refunds would be sent directly to the applicant.

The move follows a consultation earlier this year to set up the one stop shop allowing businesses to make VAT declarations online. It is hoped that the scheme would simplify the existing system.

At present, businesses have to pay VAT in the member state where consumption of the goods takes place, but often they do not have an office in that country.