New VAT rules 'could treble reporting requirements'
06 Nov 2013
Plans to introduce a standardised VAT return for all businesses across the EU could significantly increase reporting obligations for UK firms, some experts have warned.
The European Commission has outlined new proposals to introduce a standard VAT declaration for all European businesses, in a bid to remove the many variations in filing requirements that currently exist between the 28 EU member states, making the system simpler and more cost-effective, and helping to reduce fraud.
However, while some businesses stand to benefit from a reduction in bureaucracy and costs, other firms could see their costs rise.
Under the plans, from January 2017 all businesses with a turnover of more than £1.7m would be required to file the new return on a monthly basis, compared with the quarterly returns that are currently required in the UK, significantly increasing the compliance burden for an estimated 2 million UK firms.
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