Arsene Taxand - VAT & indirect taxes

VAT PACKAGE 2010 – 2015

The content of the reform of VAT rules on the territoriality of services is now clear. This reform will apply to all EU Member States.

The reform will take effect on 1 January 2010. Numerous 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. 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. To guide you in this diagnostic review, you can access a document listing the changes that result from this reform, which has been prepared by all the members of our VAT network, which is actively working on this matter (click here).

(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 “Déclaration Européenne de Services” (“DES”) in France – click here (cm) in the 27 Member States. At the request of numerous clients, we have set up a dedicated email address (vatpackage2009@arsene-taxand.com) for you to share your questions.

(3) Define clear IT specifications that are adapted to the company's information system, as regards 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. These teams can offer assistance to company IT departments.

These projects are costly for companies that do business in a large number of Member States. These 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: diagnostic review of the VAT-related consequences, simplification to be achieved before 1 January 2010 and finally the IT project.

For further information, please contact:vatpackage2009@arsene-taxand.com


Alain Recoules
Tax Lawyer and Partner
33 1 70 38 88 17
alain.recoules@arsene-taxand.com