The Commission has made a major change to the VAT system

The tax will already be paid in the country where the item is sold. The European Commission is preparing the biggest changes in value-added tax for a quarter of a century. VAT is also proposed for cross-border trade in the European Union (EU) and companies will be able to submit one-stop-shop declarations via an online portal in their own language.

"Twenty-five years after the creation of the single market, companies and consumers still face 28 different VAT regimes in cross-border operations. Criminals and possibly terrorists have long used these omissions by organizing fraud, "said Economic and Financial Affairs, Taxation and Customs Commissioner Pierre Moscovis.

"This anachronistic system based on national borders must end. Member States should consider cross-border VAT transactions as domestic operations on our domestic market by 2022. This will make life easier for EU companies doing cross-border trade, reduce bureaucracy and simplify VAT procedures, "the EU commissioner . Four amendments are proposed to enter into force as from 2019. These measures are explicitly requested by Member States to improve the day-to-day operation of the current VAT system until the final regime is fully negotiated and implemented.

They include:Tackling fraud: VAT will be charged on cross-border trade between businesses. This kind of trade is currently exempt from VAT, providing a simple loophole for unscrupulous companies to collect VAT and then disappear without transferring government money.

One-way shop: For companies that sell across borders, it will be easier to handle their VAT obligations through a one-stop shop. Merchants will be able to make declarations and payments using a single online portal in their own language and according to the same rules and administrative templates as in their home country. Next, Member States will pay directly to VAT, as is true for all sales of electronic services. Greater consistency: a transition to the 'destination' principle, where the final VAT is always paid to the Member State of the final consumer and is charged at the rate of that Member State. This is a long-standing commitment of the European Commission, supported by the Member States. It is already in force for the sale of electronic services.Less bureaucracy: simplification of billing rules, which allows vendors to draw invoices according to their own country rules, even when doing cross-border trading. Companies will no longer need to produce a list of cross-border transactions for their tax authorities (the so-called Recapitulative Statement). Today's proposal also introduces the notion of "certified taxable person" - a category of trusted business that will benefit from much simpler and time-saving rules. Four "quick fixes" were also proposed to enter into force by 2019. These short-term measures were explicitly requested by the Member States to improve the day-to-day operation of the current VAT system until the definitive regime has been fully negotiated and implemented. According to the EC estimates, over € 150 billion of VAT is lost each year, meaning that Member States omit revenue that could be used for schools, roads and healthcare. Of these, around € 50 billion - or € 100 per EU citizen each year - is expected to be due to cross-border VAT fraud. This money can be used to fund criminal organizations, including terrorism. It is estimated that this amount will be reduced by 80% thanks to the proposed reform.

Amazon has to return 250 million euros to Luxembourg

The Commission did not fine the company, but ordered it to return about 250m euros to Luxembourg, as well as interest. The European Commission (EC) said the US online merchant Amazon has received tax breaks from Luxembourg for a total of about 250 m euros. According to the European Union rules on state aid, this is illegal and the country is told that the sum should be reimbursed, writes Engadget. Amazon has agreed to pay the simplified taxes to interest. Jeff Bezos's company has managed to pay considerably less taxes. "Following an in-depth investigation commenced in October 2014, the Commission found that a tax decision issued by Luxembourg in 2003 and extended in 2011 has lowered the tax paid by Amazon there without any valid justification", commented EU Commissioner Margrete Vestagger.

Although the Commission does not fine Amazon, it has ordered the company to reimburse the simplified amount "in order to eliminate the distortion of competition created by the aid provided". The Commission has calculated the difference between what the company has paid and what Amazon actually owes to Luxembourg. The amount is about 250 million euros ($ 294 million), and the interest is also due. The Tax Administration of the Kingdom is obliged to determine the exact amount of unpaid tax. Recall that at the end of June this year, the EC fined another major US technology company - Google - 

with EUR 2.42 billion after a seven-year investigation of allegations that the technology giant has abused the monopoly used in internet search. The fine remains the largest imposed so far by the EU executive. 

Today, the EC has announced that the European Court will consider another case related to tax concessions granted by states to large companies. This is the technology giant Apple, which has received preferences from Ireland, and has thus managed to avoid tax payments of 13 billion euros.

The European Commission is sending Ireland to court for Apple

According to the EC, the state provides the technology giant with unlawful aid. .The European Commission has given court to Ireland for the tax relief it has given Apple, Reuters reports. In 2016, the Commission ordered Dublin to return the 13 billion-euro simplified tax, as this constitutes unlawful State aid. So far, however, this has not happened. "More than a year after the Commission has adopted this decision, Ireland has not yet recovered the money, even in part," EU competition commissioner Margret Vestagger said in a statement today. "We understand that recovery in some cases may be more complicated than in others, and we are always ready to help, but Member States need to make enough progress to restore competition," she added.

The Commission said Ireland's deadline for returning money was January 3, 2017. It was also clear that Apple is still benefiting from special tax breaks in Ireland.

The EU is considering banning the withdrawal of deposits from troubled banks

The European Union is considering measures to temporarily suspend the withdrawal of deposits from troubled banks, Reuters reported, referring to a draft document. The proposal aims to help rescue banks that are doomed or those that are likely to go bankrupt. Critics of the proposal, however, point out that it may undermine the credibility or even encourage the withdrawal of deposits if rumors spread to an institution that it is in poor condition. The proposal, which has been under consideration since the beginning of the year, has come to light less than two months after the Spanish Banco Popular has been the subject of massive withdrawal of deposits, which has contributed to its collapse. The project also comes amid the debates in individual European countries about how to deal with troubled banks around a decade after the start of the financial crisis that the European Central Bank has had to print billions of euros to cope with a prolonged economic downturn. The power to temporarily block the withdrawal of deposits is a "viable option". This is Estonia's position on the case, which is currently the EU's rotating president, which shows that individual countries have different positions on the case. Countries like Germany, where there is a similar option at national level, support such a pan-European measure.  "We want to prevent bankrupt banks from going bankrupt," an anonymous German government official told Reuters.

"We strongly believe that this will prevent depositors from withdrawing money early," said Charlie Banister of the Association for Financial Markets in Europe (AFME) lobbying group. The Estonian proposal was discussed on July 13, but no decision was taken, Brussels told the agency. It is expected that the discussions will continue in September. The text can not enter into force without the consent of the European Parliament. If it is accepted, the document will run counter to the November European Commission proposal to strengthen the powers of national supervisors in cases of mass withdrawals. However, it provides for exclusion from the general rule of guaranteed deposits, ie up to 100,000 euros. The Estonian proposal provides for the withdrawal to be blocked within five days and extended to a maximum of 20 working days in exceptional circumstances.

The current rules within the EU allow a two-day denial of payment in banks in a bad state, but they exclude deposits. Many countries are in favor of stopping payments from supervised banks, but at that time the Bank's other activities continue to run. Most countries are opposed to so severe restrictions when it comes to knowing that a bank is experiencing difficulties, Reuters notes.

According to Jean-Claude Juncker, the quality of food should be the same in both Western and Eastern Europe

Food quality was on the menu during Thursday's talks between Slovak Prime Minister Robert Fico and European Commissioner Jean-Claude Juncker. The two agreed that Slovaks and other Central European citizens should have the right to equal food quality compared to Western Europe, Euronews said. "The Slovak people, Slovak consumers, have the absolute right to equal product quality. We will not deal with the issue in a benevolent and negligible way. This is the question of proving as a European Commission that there is no second category of citizens of Europe.

All citizens have equal rights because they have equal dignity, "Juncker said after the meeting. According to a number of eastern and central European countries, their citizens have been discriminated against by food companies selling lower-quality food.

Brexit begins

British Prime Minister avoid rebellion in parliament and received carte blanche to negotiate, but will have to face another referendum on independence in Scotland. The process of the British departure from the EU can now begin. On Monday night at Westminster parliament rejected two amendments of the upper house (Lords) and on Tuesday, Prime Minister Theresa May received approval to start negotiations with Brussels. Lords not started the "game of ping-pong" with lawmakers that would delay the negotiations and tried to push back amendments to the bill for Brexit, which oblige the government to agree the final deal with the EU to Westminster and to guarantee the rights of European citizens on the island. The preparation of the negotiating framework will be complicated diplomatic process that will encounter different visions of Brexit countries - EU members. In a speech to the lower house of parliament on Tuesday afternoon, however Mei gave no indication of when it will inform the European Commission and the EU Council for Britain's decision to trigger Article 50 of the Treaty of Lisbon.

Most likely it will happen sometime in the week between 26 and March 30 - after the anniversary of the Treaties of Rome, which created the European Economic Community (March 25) and before the release of the British Parliament in the rest of March 31st. 

In his speech to parliament on Tuesday May stressed that everything is on the table, but on certain topics should achieve a quick consensus. Such is the rights of EU citizens in the UK and the reciprocal rights of the British in the EU. In other will be more difficult to reach consensus, such as the British contribution to the EU budget and the country's participation in the common EU market. Fighting on three fronts. In this situation, the Prime Minister of the United Kingdom will have to wage war on three fronts in the next two years. The first, of course, is with the EU. During the negotiations, the UK will most likely trying to reach consensus with Brussels for key negotiating points as the rights of British citizens in EU countries, contributions to the Community budget and access to the single market. Since it is unlikely that this can be achieved, London will probably try to negotiate in parallel with the 27 members of the community behind the European Commission. "I do not like Brexit, I want to be on the same boat on which they were British. The day will come in which they will embark again on our boat, I hope"

Jean-Claude Juncker, European Commission President

The second front will be in Westminster. According to British newspaper The Times, referring to the leaked reports from the government in Whitehall, Parliament will have to adopt at least seven law as part of Brexit process. They are related to agriculture, trade and tariff data protection, fisheries policy and, of course, immigration to the country. All these legal changes have to be agreed by Parliament and can cause turbulence in the parliament, which remains divided regarding specific elements of Brexit negotiations.

Final battle could be the worst for the conservative government, and the future of the UK. On Monday the Scottish Premier Nicola Sturgeon stated intention to initiate a second referendum on Scottish independence between the end of 2018 and the spring of 2019 - in the middle of negotiations between London and Brussels. May Sturgeon attack in parliament on Monday and accused it of "looking like a horse with blinders" when he wants a new referendum for independence in such an important and uncertain moment in British history. Most likely the British Prime Minister will honor the request of Edinburgh, but will try to postpone the date of the referendum itself. Sturgeon, however, admitted that there is no guarantee that Scotland will remain part of the EU and NATO automatically when removed - this is the official position of both institutions since before the first referendum. This is not the only voice for separation from Britain, which was heard on Tuesday. Northern Ireland, "Sinn Fein" also said he wanted a referendum on the separation of Northern Ireland from the United Kingdom. However, the party does not have the same weight as the Scottish nationalists and likely to trigger a referendum is less. Certainly London and Dublin would have to agree on a special regime border on the island of Ireland. 

B-Day is approaching, and with it - and uncertainty

After a day that Mei told European leaders on their intentions (jokingly referred to as B-Day in British media and political circles, a code name of the landing operation in Normandy during the Second World War - D-Day), will follow a complicated procedure preparation of the agenda of the talks until then they will start. According to Bloomberg's decision of May to wait until the end of March called into question when it will meet European leaders to prepare the negotiating framework. The reason is that this should have happened a month after the activation of Article 50, which will coincide with the French elections (April 23 and the runoff on May 7). So the French can request postponement of the summit for late May, which will cut the already short time to negotiate and to the detriment of London. 

The preparation of the negotiating framework will be complicated diplomatic process that will encounter different visions of Brexit countries - EU members. Some, like Germany insist on "hard" out of Britain, the country's exit from the single market and the payment of money that London due to the EU budget by the end of the negotiations. Others, such as Eastern European countries will be more willing to negotiate with London and can work for "mitigation" of the negotiating framework.

Bulgaria has not expressed its official position on Brexit negotiations.