Bruegel Event Recordings

Value-added tax (V.A.T.) on goods and services varies widely across the EU in terms of the level of the tax, the threshold of firms’ turnover above which it applies, and bureaucratic burdens that apply. Such differences have hampered cross-border trade within the (digital) single market. Removing those barriers would help small to medium-sized enterprises (SMEs), often cited as drivers of the economy, to grow. In this event, we will address major challenges for cross-border commerce that arise from V.A.T. differences across Member States: -What is the impact of A.T. differences among Member States on cross-border commerce and growth of European economy? -Which are the challenges in implementing the recently adopted country of destination principle? -How do the envisioned changes to the VAT framework will affect SMEs? -How can we simplify and harmonise tax rules to induce further investments and growth of SMEs? -Where different V.A.T. rates are applied to physical versus digital goods in different Member Sta