EU VAT Directive

The EU VAT Directive sets harmonized rules across European Union member states for applying Value Added Tax (VAT) on goods and services. It aims to create a consistent framework to ensure fair taxation, reduce tax evasion, and facilitate cross-border trade within the EU. The directive defines what transactions are taxed, how VAT rates are applied, and responsibilities for businesses and tax authorities. Overall, it promotes efficient taxation, transparency, and integration of the EU’s internal market while giving member states some flexibility within common guidelines.