On the lookout for a solution that tackles VAT fraudulent operations, EU member countries have started implementing a new VAT E-invoicing system that aims at better collecting information on B2B operations. Is it a viable measure for the post-pandemic and post-Brexit economies in the European Union? Check out here
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Following the Italian successful VAT E-invoicing system implementation to improve tax collection and data measurement, France, Poland and Germany have started giving signs of interest to do likewise. The post-pandemic and post-Brexit scenarios will force countries to impose stricter initiatives regarding tax collection, mainly to mitigate further economic impacts.
As VAT fraud has caused huge fiscal harassment locally, the new system will help government revenue authorities keep track and monitor transactions in real-time, being able to measure and provide more accurate data to the European Commission financial supervision bureaus.
Businesses will have to issue XML format invoices, allowing administrations to receive more detailed transaction data on a much more frequent basis.
The next steps to the new VAT E-invoicing implementation depend on a new EC legislative proposal. However, it may take longer than countries can bear to tackle economic gaps caused by the current problematic scenarios. Further actions must be taken individually, which may face setbacks, mainly regarding the current VAT Directive rules.
Considering that the current EU VAT system causes high costs to businesses and fails to detect frauds, what is your opinion on the new E-invoicing alternative? Do you think the costs and viability of its implementation are feasible for EU-member countries after the pandemic and Brexit storm? Let us know in the comments below.
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