Tax & Accounting Blog

Is this an official admission of failure by the EU Commission with respect to its requirements …

Indirect Tax, VAT-GST Management July 17, 2010

In an article in the Financial Times’ electronic issue of July 15, 2010 Nikki Tait draws a connection between the EU Commission extension of the deadline for submitting 2009 company expenses from September 2010 to March 2011 and the failure of most EU Member States to comply with the Commission’s requirements to provide electronic means of submission of those expenses. 

The article states that “A survey by the International VAT Association found that, by the electronic system’s January launch, only seven EU countries had fully working electronic refund systems. Fourteen either did not have working portals or only partially working ones, and it could not obtain information from a further six countries.”  It goes on to say that “The association criticized the failure to conduct end-to-end testing of the IT system before it went live, and also the failure of countries to collaborate in building compatible portals – and cited Finland and Sweden as the only countries known to have worked together.”

The question now is will the extension by itself resolve the problem or should it be supplemented by stiff penalties imposed on non-compliant governments to be used to some extend in helping industries where companies have been extremely badly affected.