EY comments on the forthcoming VAT 2015 EU changes

24 March 2014

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Jean-Benoit Berty, Head of EY’s UK technology, media and telecommunications practice, comments on the forthcoming VAT 2015 EU changes:

“Businesses are currently asleep at the wheel over this issue. Many wrongly believe it to be a tax concern but in actual fact it will have a much broader impact across their business.

"In addition to the complexity and challenges of having to file tax reports across multiple countries there is also the pressing decision around how much of the price increase will be passed onto consumers, as well as the subsequent impact on revenue, profit and margin. Businesses must act now to assess the impacts across the whole business and identify critical next steps. The most proactive businesses have already coordinated programmes making the necessary changes to their systems, relationships with third parties, and intermediaries, and the customer experience. Those who don't act now risk non-compliance penalties, loss of revenue and reputational damage."