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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