SME Chamber President meets MDB Officials
22 April 2024
Malta Chamber of SMEs President Mr Paul Abela met MDB Chairman Leo Brincat and CEO...
Taxation: Countdown to simpler and fairer VAT system
07 July 2014
The six month
countdown has begun to a major change in the EU VAT system, which will ease
life for many businesses and ensure fairer revenue distribution between Member
States. From 1 January 2015, VAT on all telecommunications, broadcasting and
electronic services will be due where the customer is based, rather than where
the supplier is located.
This changeover will ensure a more level playing field
for businesses, and fairer taxation rights amongst Member States. In parallel,
a mini One Stop Shop will be launched, greatly reducing costs and
administrative burdens for businesses concerned. With the mini One Stop Shop,
businesses supplying e-services to customers in more than one EU country will
be able to declare and pay all their VAT in their own Member State. This is
consistent with the Commission's goal of reducing tax obstacles and burdens for
cross-border companies in the Single Market. The Commission has invested
greatly over the past few years to ensure that national tax authorities and
businesses are well-prepared and equipped to ensure a smooth transition to the
new system next year. This work continues, along with an intensive information
campaign, to ensure that both Member States and companies can reap the full
benefits of these important changes.
