The Commission proposes to improve the Value Added Tax (VAT) environment for e-commerce businesses in the EU. These proposals will allow consumers and companies, in particular start-ups and SMEs, to buy and sell goods and services more easily online.
Unlocking e-commerce in Europe and the creation of a Digital Single Market are among the top priorities of the Juncker-Commission.
By introducing an EU-wide portal for online VAT payments (the ‘One Stop Shop’), VAT compliance expenses will be significantly reduced, saving businesses across the EU €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 EU countries.
These 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 if no action is taken.
In particular, the Commission proposed:
These legislative proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.
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