An agreement has been reached by the Economic and Finance Ministers of EU Member States on a series of measures to improve how VAT works for online companies in the EU.
The new system is expected to make it easier for consumers and businesses, in particular start-ups and SMEs, to buy and sell goods cross-border online. It should also help Member States to recoup the current estimated €5 billion of VAT lost on online sales every year.
The new rules will come into force progressively by 2021 and will:
The One Stop Shop for sales of online goods is due to come into effect in 2021 to give Member States time to update the IT systems underpinning the system.
Further information can be found using the following links:
Q&A on VAT for e-commerce
Commission proposal for EU VAT reform
Action Plan on VAT – Towards a single EU VAT area
Digital Single Market strategy
Digital Single Market - Modernising VAT for cross border e-Commerce