EU VAT pilot project extended

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EU VAT pilot project extendedVAT pilot project across the EU countries which began on the 1st of June 2013, allows participating EU member states to arbitrate cross-border VAT transaction disputes between themselves. Such member states as Belgium, Estonia, Spain, France, Cyprus, Lithuania, Latvia, Malta, Hungary, Netherlands, Portugal, Slovenia, Finland and the UK are participating in the project. The aim of the project is to improve legal certainty for member states in their cross-border VAT transactions. The proposed introduction of cross-border rulings, in reference to the transactions they envisage will allow taxable persons planning cross-border transactions to one or more participating member states to request a ruling in the participating member state where they are registered for VAT purposes. The European Commission has extended the pilot project for another year until 31 December 2014, though it was planned to complete it on 31 December 2013. A mid-term review of the experiment will be made in June 2014 and if the results are positive, the EC may recommend further development of this practice.