EU e-commerce - VAT proposals

20 December 2016

On 1 December 2016 the European Commission issued a proposal for a range of measures that it hopes will simplify the EU VAT regime for e-commerce traders of goods and services.

Before they are implemented these measures will need to be agreed by all 28 EU member states and once agreed they will be introduced from 2017 onwards.  Please see below for further detail in regards to these:

  • 2017 – EU member states to be permitted to levy the same VAT rates on electronic books and journals as their paper equivalents.
  • 2018 - A €10,000 VAT registration threshold for declaring e-service sales to consumers will be introduced. This relates to the new electronic service rules that were brought in during January 2015 which meant that companies selling E-services to consumers had to charge VAT in the customer’s country.


This threshold will only apply to EU companies and once implemented these companies will be able to report the sales to foreign EU consumers below the €10,000 annual threshold in their domestic countries VAT returns.

  • 2021 – In an effort to reduce foreign VAT registrations and administration for distance selling companies the Mini One-Stop-Shop single filing facility, currently used for cross-border sales of E-services to consumers, will be extended to the sales of e-commerce goods.

Currently businesses involved in the sale of e-commerce goods to consumers have to follow EU distance selling rules which requires them to register when their sales meet certain thresholds in each EU country.  This could potentially mean that they have to register and file VAT returns in each of the 28 EU member states.

E-commerce VAT

READ MORE

Import One-Stop-Shop (IOSS)

READ MORE
LATEST NEWS

Morocco introduces VAT on e-services for non-resident...

From 14 February 2024, Morocco introduced VAT at 20% on the sale of digital services by non-resident providers to local consumers.  Previously, foreign...

SEE MORE
VAT news
LATEST NEWS

Polish Ministry of Finance issues new National...

The Polish Ministry of Finance recently announced a round of nine public consultations ahead of a newly proposed July 2025 launch date of KSeF B2B e-invoicing...

SEE MORE
VAT news
LATEST NEWS

UPDATE: Belgium confirms the introduction of mandatory...

During February 2024, the Bill legislating for mandatory B2B e-invoicing in Belgium was gazetted, confirming the introduction of an e-invoicing regime from 1...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.