Europe Announces 2027 VAT Law

A new VAT law has been introduced to simplify and reorganize existing rules, which combines multiple VAT laws into one framework. Starting January 1, 2027, businesses will be able to claim VAT in the correct filing period even if the invoice is received later. Please call us to ask about which details apply to your business; but generally as long as the invoice arrives before the VAT return is filed. The new rules intend to prevents countries from denying VAT deductions based on timing and technicalities. It also reinforces the principle that substance matters more than formalities. VAT deductions can no longer be denied if the taxpayer acts in good faith, receives the invoices later than filing deadlines, and claims the deduction within the applicable limitation period.

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