Talking Tax

The European Union wants to harmonize how companies issue electronic value-added invoices across the bloc as part of a broader push to make VAT easier to pay. The EU is hoping e-invoicing will help ease complexity and close the gap between expected VAT revenue and what countries actually collected. Lost VAT revenue reached 135 billion euros ($152 billion) in 2019 alone, according to the European Commission. The Commission in January launched a public consultation to explore its role in reducing the administrative burdens of VAT compliance—including harmonizing e-invoicing rules—for businesses and in helping member countries fight VAT fraud. At least 13 EU countries already have, or plan to implement, e-invoicing systems, but variations in rules across the bloc are creating administrative headaches for companies. The deadline for comments is April 15 and the Commission plans a legislative proposal in summer or fall. On the latest episode of Talking Tax, Ellen Cortvriend, director of indirect tax technology at