Anyone who deals with VAT knows how complicated the EU VAT
system is. The European Union is planning to simplify the system.
The first updates will apply from 2020 at the latest.
According to the EU Commission, the VAT gaps resulting from the
weaknesses of the system amount to more than EUR 150 billion
annually, or 12 percent of the VAT due. It is estimated that
cross-border fraud alone is responsible for VAT losses of around
EUR 50 billion (i.e. EUR 100 per EU citizen). This money can be
used for the funding of criminal organisations, including
terrorism. The proposed reforms could reduce these losses by an
estimated 80%.
VAT ID as material prerequisite for tax exemption
In the future, the acquirer in the other member state must have
a valid VAT ID number on the one hand, and, on the other, the
supplying company must record the delivery in the recapitulative
statement.
