Fleet suppliers in 12 European countries have less than four months to help customers adopt systems capable of converting records and data into Euros.
These suppliers will also have to convert fleet supply agreements in national currencies into Euro-based invoices.
Any company with a VAT-registered business in one of the 12 Eurozone countries will have to apply correct conversion rules to the new currency.
VAT returns filed in incorrect currency units will incur penalties in some countries, and fines will also apply for late filed tax returns.
These penalties can add up to 15% of the tax due for the period concerned in certain member states.
PricewaterhouseCoopers advises that 'it will become a legal requirement to file tax and VAT returns, and annual accounts in Euros'.
'Some countries are allowing returns which cross the January 1 2002 threshold to be filed in either Euros or local currency, with future returns to be filed in Euros. However, certain countries require filing in Euros with immediate effect; ie from January 1, 2002.'
In Ireland, for example, all invoices must be issued in Euros from the beginning of 2001. (September 2001)