Michaela Merz

EU: Commission proposes new VAT rules B2C (e-commerce / online gambling platforms)

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726171_web_r_k_b_by_rainer-sturm_pixelio-deOn 1 December the European Commission adopted a package of measures to improve the tax climate for e-commerce companies in the EU. With these proposals, the Commission follows up on its commitments made in the strategy for a digital single market for Europe and the Action Plan for a common VAT Area in the EU and a new VAT approach introduced e-commerce.

The introduction of an EU-wide portal for online payments of VAT (the “one-stop shop”), VAT compliance costs should fall sharply. With the new rules, the VAT will be paid in the Member State of consumption and tax revenue will therefore be shared more equally across the EU. Finally, the Commission also makes her promise that the Member States to e-publications such as e-books and online newspapers can apply the same tax rate as their printed counterparts (the provisions did not allow that e-publications received the same favorable tax treatment as traditional print publications will be deleted).

The proposals relate in particular to:

  • new rules allowing companies that sell goods online, easily able to fulfill all their VAT obligations in the EU in one place;
  • simplification of the VAT rules for start-ups and micro-enterprises that sell online: under € 10,000 VAT on cross-border sales will be handled domestically. SMEs will then be able to use
  • simpler procedures for cross-border sales to € 100,000, which they can do business more easily;
  • measures to combat VAT fraud from outside the EU, which could distort the market and cause unfair competition;

the possibility for Member States to reduce VAT rates for e-publications such as e-books and online newspapers.

 

Please see links for the relevant documents below:

 

Bildquelle: Rainer Sturm / pixelio.de

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