More companies will enjoy a simpler, cheaper and more efficient VAT payment system. MEPs have decided to extend the use of an online VAT payment system for businesses, which would reduce compliance costs and provide additional funding to the Member States. MEPs voted 540 votes in favor, 30 votes against and 68 abstentions – the proposal to extend the use of the MOSS, currently used for the calculation and collection of VAT for electronic goods, telecommunication, and services cross-border broadcasting. The proposal is to extend the use of MOSS so that businesses selling tangible goods and non-electronic services across EU borders benefit from the same efficiency gains in VAT calculation and payment by allowing them to pay a single Member State for all sales in within the EU.
The European Commission declares that businesses currently operating outside the MOSS have to pay an average of EUR 8 000 per year for each Member State they provide. An extension of the MOSS system could cut regulatory firms’ costs by € 2.3 billion, while Member States could increase their VAT revenue by more than € 7 billion annually.
MEPs also supported a separate measure, but with 576 votes in favor, 30 against and 32 abstentions, aimed at improving coordination between tax authorities on taxable person information, which would facilitate the functioning of the online.
Ludek Niedermayer (PPE, CZ) said: “This is another step towards a modern tax system adapted to the 21st century. The result will be the prevention of fraud and the collection of more, more efficient VAT.”