1. The Future of VAT in the EU Discussion of the EU Commission Green Paper ….2011 John Chandler Product Management – M3 Financials john.chandler@uk.lawson.com

2. Page 29/8/2015 GAM3 ….at CUE2011….with Country Badges..!!

3. Page 39/8/2015 The European Commission Green Paper..on the future of VAT

4. Page 49/8/2015 A simpler, more robust & efficient VAT system…  The Green Paper [SEC(2010) 1455 final] –On the future of Value Added Tax  The objective of the Green Paper is to launch a broad based consultation process with stakeholders on the functioning of the current VAT system and how it should (could) be reframed in the future  The scope of this review includes: –VAT Reporting –EU Sales Reporting –Intrastat Reporting

5. Page 59/8/2015 Standardised VAT Reporting across EU….  One Common EU VAT Report….across all 27 Member States –Same Lines and Boxes –Common definition of line and column content –Same detail and summary reporting requirements –Same indicator rules for EU Sales  One common VAT Audit File….to be used by all country audit bodies –Common definitions and file content –SAF-T is NOT currently a simple specification and should be revised  IF VRNO is stored do we need Name and Address too….?  Why do some countries have an Annual VAT Report…? –The monthly/quarterly returns should be adequate…?

6. Page 69/8/2015 Common VAT Rates and Rules across EU  Goods and Services to be classified under standard rules –Exemptions rules to be common –High; Low and Standard Rates to be common classification –Same items same VAT treatment  Simplification of Reporting Rules….from today’s position –There are too many rules –The rules are too complex for most businesses –The rules are too complex for most VAT auditors  Reduce the number of VAT Exemptions –In every Member State…..  Standardise the handling of VAT and Cash Discount –GB; BE and SE have one approach –DE and AT take another –NL is different again

7. Page 79/8/2015 Documentation …for VAT Purposes  Standardise the Invoice Layout to meet VAT Rules in EU –Today we have 14 basic rules…but….. –Each country adds its own specific rules/requirements  Clarify Corrective Invoicing rules and standardise across EU –Some countries have a requirement …some don’t  Clarify what documents need to be retained for VAT Purposes –Standardise rules for using scanned images instead of paper

8. Page 89/8/2015 Inter and Intra Division Trading  Introduce one EU VAT Registration Number for these Businesses  Apply VAT Group Logic across Europé  In the end this will remove the need for Fiscal Representation –The VRNO can be used across EU Member States

9. Page 99/8/2015 Collect and audit VAT centrally..at EU Level  Political of course….  BUT….  Probably the most efficient way to create standardisation

10. Page 109/8/2015 Response for France….as an example…..

11. Page 119/8/2015 PwC….destination or origin based approach

12. Page 129/8/2015 PwC….Intra Group Trading…..exempt from VAT rules

13. Page 139/8/2015 PwC….

14. Page 149/8/2015 PwC…Standardisation or Commonisation…..

15. Page 159/8/2015 The EU Commission Green Paper….  Links….  http://ec.europa.eu/taxation_customs/common/consultations/tax/2010_11_future_vat_en.htm http://ec.europa.eu/taxation_customs/common/consultations/tax/2010_11_future_vat_en.htm  EU_Green Paper on VAT EU_Green Paper on VAT  PwC VAT Study Summary_en.pdf PwC VAT Study Summary_en.pdf  OECD_SAF-T Version2 Specification April 2010.pdf OECD_SAF-T Version2 Specification April 2010.pdf  OECD_SAF-T Schema_Version2 April 2010.pdf OECD_SAF-T Schema_Version2 April 2010.pdf  M3 10.1 - Standard Audit File SAF-T v3.00.pdf M3 10.1 - Standard Audit File SAF-T v3.00.pdf  Comments to be sent in by the end of May 2011

16. Page 169/8/2015