James Cowper leads response on EU reform of VAT
Thames Valley and South Coast accountants and business advisers James Cowper has coordinated a detailed response on an EU consultation on the future of VAT on behalf of clients and accountancy firms in 94 countries.
The response was lead on behalf of James Cowper clients in the UK and the Kreston network of accountancy firms in response to an EU Commission consultation entitled ‘Green Paper on the future of VAT– Towards a simpler, more robust and efficient VAT system’. The Kreston network represents independent accountancy practices in 94 countries, with 700 offices and employing more than 19,500 people. The response was lead by James Cowper’s VAT manager Ruth Corkin.
Ruth said: “The EU Commission launched its Green Paper in December 2010 asking businesses and their advisers for their thoughts as to the shape of the VAT regime for the longer term.”
The EU Commission had identified a number of areas of concern including intra-community supplies, the management of the VAT system, harmonisation of the tax across the single market, and the sharing of information between Member States. Our response focused on those areas that we believe to have the greatest impact on businesses regularly conducting business in multiple EU countries.”
One area that causes concern for businesses and their advisers is the complexity of VAT and the different interpretation of the legislation between Member States.
Ruth adds: “The EU has made steps to simplify the VAT regime across Member States with changes to the place of supply rules coming into effect initially in January 2010, and our research suggests that businesses are benefitting even though they still believe the system to be overly complex.”
James Cowper gives the example of services relating to land. In France, services relating to land are not treated as being supplied where the land is situated when the provider of those services is not a French registered business. The tax is accounted for by a local agent in France, despite the fact that the place of supply of services relating to land is a specific exception to the new basic rule for the place of supply of services.
“It is these anomalies that cause businesses and their advisers’ real headaches, and it is exactly these instances that the EU green paper is looking to address” says Ruth.
James Cowper and Kreston submitted its response to the EU Commission on 31 May.
A copy of James Cowper and the Kreston Network’s response to the EU Commission consultation is available through James Cowper’s website – www.jamescowper.co.uk.
Ruth Corkin,VAT Manager, James Cowper LLP +44(0)1865 200500 or email rcorkin@jamescowper.co.uk
14.06.11