Value Added Tax Directive (2006/112/EC)

The Value Added Tax (VAT) Directive (2006/112/EC) is a key piece of European Union legislation that standardizes the VAT system across EU member states. It outlines how VAT should be applied to goods and services, ensuring consistent tax practices and rates. This directive helps simplify trade within the EU by reducing barriers, as businesses can operate under a common set of rules. It defines who collects VAT, how it is charged, and the procedures for refunds, making it easier for countries and businesses to comply with tax regulations while promoting economic efficiency.