Definitive value added tax regime in European Union

This diploma thesis focuses on the proposal for a Council Directive as regards to the definitive regime of the value added tax for the taxation of Intra-Community supplies of goods prepared by the European Commission. The Commission proposes to replace the current system in 2018 by a system that better meets the requirements of today’s world, would be resilient to tax fraud and less administratively demanding for businesses. In addition, it proposes measures to increase legal certainty under the current system through four quick fixes and a concept of certified taxable persons. According to the intention of the European Commission, certified taxable persons should play a key role in the definitive system. Under the rules of the definitive regime the place of supply of the goods shall be where the goods are located at the time when transportation ends. If the customer is a certified taxable person, the supply is subject to the reverse charge procedure. If he is not, the supplier is liable for the value added tax in the state where the goods are located at the time when transportation ends. He will be able to do so via a one stop shop. The new system will reduce indirect administrative costs and reduce carousel frauds. However, it will increase direct administrative costs and may rise number of disputes between the Member States. To further reduce indirect administrative costs, I suggest to harmonize the definitions of products eligible for reduced rates of value added tax.