The EU Council on 17 October adopted a regulation laying down implementing measures for the common system of value added tax.

The regulation sets out certain aspects of the basic VAT directive (the “sixth VAT directive”: 77/388/EEC) with the objective of ensuring that application of the VAT system complies more fully with the objective of the internal market, in cases where divergences in application have arisen or may arise which are incompatible with the proper functioning of the internal market.

The new measures, which will come into force in July 2006, aim at ensuring clarification of VAT law, in particular in respect to:
• The place of supply, and therefore taxation, of various types of goods and services;

• Exemption from VAT of certain goods and services;
• The taxable amount for VAT purposes;
• The definition of electronically supplied services;

• Accounting details for simplified arrangements for the application of VAT by non-EU suppliers of electronic services.

This entry was posted on Thursday, October 21st, 2004 at 11:51 and is filed under VAT. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.