The european Commission has unveiled a series of measures to improve the Value Added Tax (VAT) environment for e-commerce businesses in the european Union. Our proposals will allow consumers and companies, in particular start-ups and small businesses, to buy and sell goods and services more easily online.
By introducing an european wide portal for online VAT payments (the ‘One Stop Shop’), VAT compliance expenses will be significantly reduced, saving businesses across the european Union €2.3 billion a year.
The new rules will also ensure that VAT is paid in the member state of the final consumer, leading to a fairer distribution of tax revenues amongst european countries.
Our proposals would help member states to recoup the current estimated €5 billion of lost VAT on online sales every year. Estimated lost revenues are likely to reach €7 billion by 2020 and it is essential that we act now.
Finally, the european Commission is delivering on its pledge to enable member states to apply the same VAT rate to e-publications such as e-books and online newspapers as for their printed equivalents, removing provisions that excluded epublications from the favourable tax treatment allowed for traditional printed publications.
