Keywords: VAT, tax, European Commission, SME, einvoicing, electronic invoicing, e-invoicing

New VAT rules to make life easier

Anna Bowsher | News | 24 December 2012

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From 1st January 2013, new EU VAT rules enter into effect, which will make life much simpler for businesses across Europe.

First, electronic invoicing will have to be treated the same as paper invoicing, enabling companies to choose the VAT invoicing solution that works best for them. This has the potential to save businesses up to €18 billion a year in reduced administration costs.

Second, Member States will be allowed to offer a cash accounting option to small businesses with a turnover less than €2 million a year. This means that these SMEs will not have to pay the VAT until it has been received by the customer, thereby avoiding cash-flow problems for them.