A new standard VAT return, which can cut costs for EU businesses by up to €15 billion a year, has been proposed by the Commission today, which it says will have a "radical effect" on the cost and simplicity of doing business in the bloc.

The initiative aims to slash red-tape for businesses, ease tax compliance and make tax administrations across the Union more efficient. The information required in declaring VAT, and the timelines to do it, will be standardised across Europe. This...