One stop shop for VAT on EU trade

Three schemes were launched on 1 July to deal with VAT on business-to-consumer supplies of goods and services to EU customers.

The schemes – ‘Union’, ‘non-Union’ and ‘import’ – have been designed to ease compliance and administration issues for businesses selling to consumers across EU national borders. The schemes facilitate the collection of VAT by one EU member state, which is then passed on to the member state in which the supply is deemed to have taken place.

Businesses that register for VAT using one of the schemes will be able to declare sales across all EU member states. They will therefore complete just one return for all EU sales, rather than having to register in all member states in which their customers are based.