>>>Analysis of the impact of the split payment mechanism as an alternative VAT collection method (European Commission)

Analysis of the impact of the split payment mechanism as an alternative VAT collection method (European Commission)

Author: this study was carried out for the European Commission by Deloitte

Date of publication: December 2017

This study designs and analyses a range of options for applying split payment mechanism as an alternative VAT collection method in both the current and definitive VAT regime. The options encompass different types of transactions (B2B, B2C and B2G) as well as different
types of payment (EFTs, credit cards, cash payments).

The design of the policy options for applying split payment mechanism takes into account previous studies, ongoing VAT policy developments and examples of split payment or similar mechanisms implemented or considered for implementation within the EU and in third countries.

The analysis is based on available literature and datasets, as well as data collected especially for the study from Member States, business and their representative organisations and other stakeholders (including banks and payment providers). Data gaps have been filled with a set
of proxies and (expert-based) assumptions.

The study found no strong evidence that the benefits of split payment would outweigh its costs. The main identified effects were that a wider scope of split payment would potentially provide a larger decrease of the VAT gap and hence have a positive impact on the Member
States’ budgets, but would also significantly increase the related administrative costs for businesses, especially when applied on broad scale.

Read the full report here

2018-01-18T15:11:23+00:00 18 januari 2018|Categories: BTW en douane - Fiscaal recht|Tags: , , |