Directive 2006/112/EC

Directive 2006/112/EC is a European law that standardizes how Value Added Tax (VAT) is applied across EU countries. It ensures a consistent framework for taxing goods and services, defining what is taxable, how to calculate VAT, and rules for invoicing and refunds. The goal is to facilitate trade within the EU by harmonizing tax rules, reducing fraud, and ensuring fair taxation. While each country manages its VAT rates and specific procedures, the directive provides common principles to promote clarity and cooperation in the EU's internal market.