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The European Commission (EC) has proposed ways to remove VAT barriers in the cross-border delivery of goods ordered and services received online.
The communication A Digital Single Market Strategy for Europe acknowledges that the administrative burden of VAT compliance and distortions of competition cause problems for businesses.
The European Commission (EC) has proposed ways to remove VAT barriers in the cross-border delivery of goods ordered and services received online.
The communication A Digital Single Market Strategy for Europe acknowledges that the administrative burden of VAT compliance and distortions of competition cause problems for businesses.
It proposes a number of VAT changes to be made in 2016, including an extension to the single electronic registration and payment mechanism – known as the mini one-stop shop – to intra-EU and third-country online sales of tangible goods.
The EC document also recommends a common EU-wide VAT threshold to help small start-up e-commerce businesses – and it posits allowing for home country controls including a single VAT audit of cross-border businesses, and removing the VAT exemption for the importation of small consignments from suppliers in third countries.
EC president Jean-Claude Juncker told the German newspaper association that the commission will next year consider the introduction of a reduced VAT rate for online books and digital newspapers.
His announcement follows losses in the Court of Justice of the European Union earlier this year by Luxembourg and France, which had attempted to lower their sales tax rate for e-books.
