European Union (EU) VAT Directive

The European Union VAT Directive is a set of rules that governs Value Added Tax (VAT) across EU member states. VAT is a consumption tax applied to goods and services at each stage of production and sale. The Directive ensures a harmonized approach, meaning businesses can operate under similar tax rules, reducing complications in cross-border trade. It outlines tax rates, exemptions, and compliance measures, aiming to prevent tax avoidance and fraud while ensuring fair competition within the single market. Essentially, it helps make transactions smoother and more transparent for consumers and businesses alike in the EU.