European Commission 25 May 2018, Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States

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This proposal for a Council Directive seeks to amend Directive 2006/112/EC to implement the definitive VAT system for Business-to-Business (B2B) trade between Member States based on the principle of taxation in the Member State of destination. Key provisions include the replacement of the exempt supply and intra-Community acquisition model with a single intra-Union supply of goods, the expansion of the One Stop Shop (OSS) mechanism for B2B transactions, and the introduction of the 'certified taxable person' status to facilitate reverse charge mechanisms. The measure aims to reduce cross-border fraud and compliance costs by harmonizing the treatment of domestic and cross-border transactions within the single European VAT area.AI