A Trillion Euro’s lost to tax evasion in the EU 1

 

A Trillion is a huge amount, its almost too large to imagine.

Here is the latest campaign video

http://ec.europa.eu/avservices/video/player.cfm?ref=I080915

As part of the intensified battle against tax fraud, the Commission launched on 6th February 2014 the process to start negotiations with Russia and Norway on administrative cooperation agreements in the area of Value Added Tax (VAT). The broad goal of these agreements would be to establish a framework of mutual assistance in combatting cross-border VAT fraud and in helping each country recover the VAT it is due. VAT fraud involving third-country operators is particularly a risk in the telecoms and e-services sectors. Given the growth of these sectors, more effective tools to fight such fraud are essential to protect public budgets. Cooperation agreements with the EU’s neighbours and trading partners would improve Member States’ chances of identifying and clamping down on VAT fraud, and would stem the financial losses this causes. The Commission is therefore asking Member States for a mandate to start such negotiations with Russia and Norway, while continuing exploratory talks with a number of other important international partners.

http://ec.europa.eu/taxation_customs/taxation/tax_fraud_evasion/missing-part_en.htm

steve@bicknells.net

VAT Returns may soon be monthly… 2

3D Vat button block cube text

From January 2017 the European Commission would like to make VAT returns monthly in all member states. Currently most UK businesses file quarterly, they only file monthly if they get regular refunds.

The European Commission see this as cutting red tape, but I am not sure how going from 4 returns to 12 returns cuts red tape?

The Commission say they have received complaints from companies who do business across Europe about confusion over the frequency of returns.

The EC is hoping to introduce a single format return, with just five mandatory boxes.  This will include:

  1. input VAT;
  2. output VAT;
  3. net VAT payable;
  4. value of input transactions; and
  5. value of output transactions.

and there could be a concession for small businesses allowing them to continue to do quarterly returns.

Do you think monthly returns would be better or worse for UK Business?

steve@bicknells.net