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VAT Package 2010 – 2015 - How will it affect your business?

21 Oct 2009

The new VAT Package and content of this reform - VAT rules on place of supply - has now been made clear. It can be confirmed that the reform will apply to all EU Member States. Arsene Taxand, our French member, guide you through what to expect from this reform and how to manage the changes.

The reform will take effect on 1 January 2010. Many companies have set up working groups in order to be able to comply with the new rules as early as possible and to the greatest extent possible. As a result IT projects have been budgeted into the last quarter of 2009.

As these projects will involve internal costs, it is important that companies:

(1) Determine precisely the practical, VAT-related consequences of this reform for each country, company and business unit, prior to launching an IT project. Our VAT network have been actively reviewing this matter. To guide you through your diagnostic review, we have prepared a document listing the changes that result from this reform.

(2) Prioritise these changes while maintaining an overview of the reform, and possibly adapt the company's tax structure (use of tax representatives, centralisation of certain intra-group services, etc.) in order to reduce, if possible, or allow for automation, given the quantity and content of European Community Sales List for services (called "D?claration Europ?enne de Services" ("DES") in France). At the request of many of our clients, we have set up a dedicated email address ( for you to share your questions.

(3) Define clear IT specifications that are adapted to the company's information system, with regards to the new VAT codes, the new requirements for the form of invoices with the new mandatory information, the new line on tax declarations of sales and lastly European Community Sales List for services. In this regard, we have set up IT teams that are specialised in this area within the Taxand network to offer assistance to company IT departments.


Taxand's Take

These projects are costly for companies that conduct business across Eu Member States. Costs can be monitored and possibly even reduced depending on the results of the first stage of planning. Implementing this reform requires a clear breakdown of the phases involved cush as diagnostic review of the VAT-related consequences. Companies should aim to achieve simplifcation before 1 January 2010.

Your Taxand contact for further queries is:
Alain Recoules
T. +33 1 70 38 88 17

Taxand's Take Author