On 28 January 2009, the European Commission published its Proposal to amend the EU VAT Directive. The aim of the Proposal is twofold: simplification and harmonization of the numerous administrative obligations for businesses and stimulation of the take-up of e-invoicing and e-archiving. In this article, the authors focus on the preparatory work that has led to this Proposal, assess whether the Proposal meets the aims and look at the next steps.