VAT refund changes hold up Europe businesses

Businesses across Europe have cash flow worries because of problems with a new electronic system that was supposed to speed up value added tax refunds across borders.

The move from a paper-based to an electronic system for VAT refunds at the start of January 2010 has been marred by the failure of about half of Europe’s member states to set up a working interface through which businesses can submit claims to other member states.

Website: International VAT Association (IVA) http://www.iva-online.org/

Website: Business Europe http://www.businesseurope.eu/

European Commission: DG Taxation and Customs Union: Taxation; VAT http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/index_en.htm

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