- Different place of supply rules depending on the journey: VAT burden (deal with different rules) and increased risk of errors and incorrect application of VAT rules - Difficulties to comply with different sets of rules in different countries and identifying when certain rules apply EFFICIENCY - Disproportionate cost when having to collect VAT in different Member - Low cost of VAT compliance for industry: limited VAT obligations (e.g. States liability to pay VAT, registration, invoicing, accounting, VAT return filing, - Difficulties in programming the cash registers used to register recapitulative statements). transactions - High voluntary VAT compliance by industry (low cost of collection for - VAT registration obligation and related costs governments) - VAT compliance obligations and costs: obligation to issue invoices and - Low VAT Gap and non-taxed transactions (i.e. efficient collection) cash receipts and need to engage local advisors - Use of cash registers: technical requirements defined per Member State and no possibility to use two or three different VAT rates - Difficulties in price setting 3. Description of Key Performance Indicators used Identification of the Key Performance Indicators (“KPI’s”) and the key Reference to the practical issues identified by industry during the first results for both the industry (businesses) and the tax authorities stakeholder consultation (Ships, Aircraft, Trains and other (e.g. coach)) to (governments) be solved CERTAINTY - Application of uniform place of supply rules for determining the place of - Complex and no “single EU” definition: misinterpretation and differing taxation interpretations - Impact of unscheduled stopovers on the VAT treatment of on-board - Unambiguous terminology (the same interpretation of rules in EU-27) transactions is unclear - Unclear definition of VAT treatment of services that are usually supplied - Limited need for litigation on board means of transport - "Other services" may be seen as ancillary to the transport services - Provision of certain services on board means of transport may create a fixed establishment according to the interpretation of some Member States
- Different place of supply rules depending on the journey: VAT burden (deal with different rules) and increased risk of errors and incorrect application of VAT rules - Difficulties to comply with different sets of rules in different countries and identifying when certain rules apply EFFICIENCY - Low cost of VAT compliance for industry: limited VAT obligations (e.g. liability to pay VAT, registration, invoicing, accounting, VAT return filing, recapitulative statements). - Disproportionate cost when having to collect VAT in different Member States - Difficulties in programming the cash registers used to register transactions - High voluntary VAT compliance by industry (low cost of collection for governments) - VAT registration obligation and related costs - Low VAT Gap and non-taxed transactions (i.e. efficient collection) - VAT compliance obligations and costs: obligation to issue invoices and cash receipts and need to engage local advisors - Use of cash registers: technical requirements defined per Member State and no possibility to use two or three different VAT rates - Difficulties in price setting 3. Description of Key Performance Indicators used Identification of the Key Performance Indicators (“KPI’s”) and the key results for both the industry (businesses) and the tax authorities (governments) Reference to the practical issues identified by industry during the first stakeholder consultation (Ships, Aircraft, Trains and other (e.g. coach)) to be solved CERTAINTY - Application of uniform place of supply rules for determining the place of taxation - Complex and no “single EU” definition: misinterpretation and differing interpretations - Unambiguous terminology (the same interpretation of rules in EU-27) - Impact of unscheduled stopovers on the VAT treatment of on-board transactions is unclear - Limited need for litigation - Unclear definition of VAT treatment of services that are usually supplied on board means of transport - "Other services" may be seen as ancillary to the transport services - Provision of certain services on board means of transport may create a fixed establishment according to the interpretation of some Member States
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