While the VIDA is still to be fully implemented and transposed, and besides having to digest the changes and their practical consequences, the companies are now invited to elaborate about a notional “post-VIDA” scenario where, again, the VAT Gap mantra is central.
Without denying the importance of this macroeconomic issue, I find the interests of the taxpayers to be completely forgotten, apart from the assumption that, as a collateral, the VIDA will result in an easier management of their VAT compliance obligations.
In my opinion, there are issues as much important as the VAT Gap, which concern to the daily lives of taxpayers and which are utterly forgotten. The VIDA introduces simplification but not an homologation of treatment, either legislative or technological, for all the transactions which may be incurred by a company operating in different member states.
Cooperation is reserved for the tax administrations and their exploitation of data for tax collection purposes, forgetting existing problems affecting the taxpayers which, perhaps, could also be addressed through such a collaboration, namely: sluggish non-established VAT refunds or the lack of a common interpretation for key VAT issues (I.e VAT fixed establishment) by the different tax administrations with disruptive effects in the operative of the companies.
For further insights, visit our entry “The “VAT after ViDA” seen from a taxpayer point of view. Fighting against the “forgotten VAT gap” and related ideas”