One Stop Shop for VAT

Created on 9th of November 2005   Last Modified on the 24th of August 2009

The Commission's proposals for a one-stop shop scheme for VAT, although less radical than originally envisaged, will nevertheless be of benefit to mobile operators. The UKTRF and ETRC have therefore assured the Commission of our full support for these proposals.

In October 2004 the Commission published their proposals for the simplification of the EU VAT arrangements, following a major study by Price Waterhouse Coopers in 2002/3. One of the main proposals was for a 'one-stop shop' scheme for VAT, whereby traders operating in a number of different EU Member States would only need to register for VAT in their home State. Originally it was envisaged that traders would also be able to make just one payment of VAT in their home State to cover all their VAT liabilities in other States, with the VAT distributed to the relevant States via a form of central clearing house system. However this element of the proposal has now been dropped due to the complexity of the scheme. The proposal is now simply that traders need only register for VAT in their home State, but they would still have to account for any VAT due on their operations in other Member States and to pay that VAT direct to the relevant States. Although this is a far less radical solution than the original proposal, it is nevertheless a step in the right direction, and will be of benefit to mobile operators in that they will no longer have to register for VAT in every State in which they operate.

However, the one-stop shop proposal is one of a package of VAT measures currently under consideration in the Council. Progress on implementation has been delayed for some years because of the failure to achieve unanimous agreement in Council on all aspects of the package. Attempts are being made to progress some aspects of the package, but it is likely to be some time yet before agreement can be reached.

To view copies of the relevant documents on the one-stop shop scheme, click on the link below.

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