August 24, 2016
EC Seeking Feedback on Cross-Border VAT Rules
Oct. 1, 2015
The European Commission (EC) is inviting businesses, industry groups and members of the public from around the world who engage in European cross-border e-commerce to help identify ways to simplify the Value-Added Tax (VAT) on those kinds of transactions. The effort is part of the EC’s Digital Single Market Strategy aimed at lowering barriers that make cross-border commerce in the EU more difficult than it should be and comes in the form of an online survey anyone can take.
Regarding the VAT, the Digital Single Market Strategy is committed to several goals including:
- Extending the current single electronic registration (i.e. the Mini One Stop Shop) and payment mechanism to intra-EU and third country online sales of tangible goods,
- Introducing a common EU-wide simplification measure (i.e. a VAT threshold) to help small start-up e-commerce businesses,
- Allowing for home country controls including a single audit of cross-border businesses for VAT purposes and
- Removing the VAT exemption for the importation of small consignments from suppliers in third countries (i.e. non EU Member States).
The survey seeks feedback from businesses or individuals affected by rule changes aimed at bringing about these goals. If you have been affected by VAT rules in Europe around cross-border e-commerce, the EC would like to hear your feedback .