In order to remove the VAT-related obstacles impeding e-commerce within the single market, a legislative proposal will be submitted by the end of 2016. Measures aimed at combatting fraud (by improving administrative cooperation within the EU and with countries outside the EU, increasing the tax authorities’ effectiveness, etc.) as well as simplification measures in favour of SMEs should be implemented.
A legislative proposal concerning a definitive VAT system for cross-border trade based on the taxation in the country of destination of the goods, with the payment of tax in the country of origin, and on the extension of the one-stop shop to B2B sales of goods should be presented in 2017. The Commission is also considering the policy of VAT reduced rates to be applied within this new regime.
Our upcoming conference on 2 June will be dedicated to this topic.