The European Commission has made the report ”VAT after ViDA – Reflections on the future of VAT” public. The report was discussed during the VEG meeting dd. December 13, 2024.
Future VAT System Vision: The VAT Expert Group proposes a restructured VAT system by 2050 that emphasizes simplification, neutrality, broadening the taxable base, and leveraging technology to enhance compliance and administrative efficiency across the EU.
Current System Improvements: Recommendations for the existing VAT framework include addressing transaction qualification challenges, enhancing the right to deduct, modernizing VAT exemptions, and aligning VAT measures with sustainability goals, while building on the ViDA package.
Implementation Roadmap: A strategic roadmap is outlined for the EU Commission, proposing a phased approach for deliverables from 2025 to 2050, focusing on collaborative implementation of ViDA, the establishment of an EU VAT agency, and the transition from directives to regulations for a more uniform VAT system across Member States.
Source VATupdate.com
