On 4 October 2017, the Commission announced plans for a major reform of the current VAT system by creating a new “definitive VAT system” for the EU.

• The default position will be that VAT must be charged on cross-border sales of goods and services between businesses, unless the purchaser is a “Certified Taxable Person”. The VAT rate that will apply will be the relevant rate in the Member State of the purchaser.
• Traders will be able to make declarations and payments using a single online portal (One Stop Shop) in their own language, and under home country administrative rules. Member States will then pay the VAT to each other directly, as is already the case for all sales of e-services.
• Invoicing rules will be simplified to allow sellers to prepare invoices in line with the rules of their own country even when trading across borders.

On 25 May 2018 a proposed directive was published containing detailed technical measures for the operation of the definitive VAT system.

On 2 October 2018, ECOFIN adopted the following proposals:

• New rules intended to improve the day-to-day functioning of the current VAT system, until an overall VAT reform strategy has been implemented. These ‘quick fixes’ are aimed at reducing compliance costs and increasing legal certainty for businesses.
• A new measure to allow Member States align the VAT rates they set for e-publications with the more favourable regime currently in force for traditional printed publications.
• Measures to strengthen administrative cooperation and to improve the prevention of VAT fraud.