31 January 2017
In an effort to prevent VAT fraud the European Commission has put forward a proposal which will allow European Union (EU) member states to introduce the reverse charge on all domestic sales between businesses with a value over €10,000.
Currently, EU member states can only apply the reverse charge to sales in specific industries (such as mobile phones and precious metals). If the above proposal is accepted then it will mean the reverse charge can be applied across all sectors.
The reverse charge allows the business customer to account for the VAT on the transaction in their own VAT reporting. This removes the requirement for the supplier to charge VAT on the transaction which means that no cash payments of the VAT amounts are exchanged.
LATEST NEWS
Belgium to cut e-book VAT rate from 1 January 2022
From 1 January 2022, the Belgium tax authorities have confirmed that the VAT rate on the sale of e-books, e-manuals, e-newspapers, and e-magazines sold online...
SEE MORE
LATEST NEWS
Ukraine to apply VAT on digital services from January...
From 1 January 2022, Ukraine will impose VAT at 20% on the sale of e-services to local consumers by non-resident businesses. At present, non-resident...
SEE MORE
LATEST NEWS
Does a UK e-commerce business need an IOSS...
From 1 July 2021, the EU’s new e-commerce VAT reforms will be introduced allowing sellers to no longer pay import VAT at clearance on low-value consignments...
SEE MORE