The European Commission is consulting until 18 December 2015 on ways to simplify the payment of VAT on cross-border e-commerce transactions in the EU, focusing particularly on small businesses using the mini one-stop shop (MOSS).
The European Commission is consulting until 18 December 2015 on ways to simplify the payment of VAT on cross-border e-commerce transactions in the EU, focusing particularly on small businesses using the mini one-stop shop (MOSS).
In line with the EC’s digital single market strategy, the Commission will make a legislative proposal in 2016 to reduce the administrative burden on businesses arising from different VAT regimes. The Commission has proposed simplification measures, including:
extending the current single electronic registration and payment mechanism to cover the sale of tangible goods;
introducing a VAT threshold to exempt micro-businesses from the new place of supply rules to help online start-ups and small businesses;
allowing cross-border businesses to be audited only by their home country for VAT purposes; and
removing the VAT exemption for the import of small consignments from suppliers in third countries.
The EC notes that as a result of the current MOSS regime, some very small businesses have faced some difficulties, particularly in the UK, where they were previously exempt from VAT up to a threshold. In its original proposal, the EC says it included a VAT threshold to exempt smaller businesses from the changes, but member states rejected that option. The Commission is putting that option forward again in order to support the EU’s start-up and smallest companies.
The consultation, which takes the form of an online survey, opened on 25 September 2015. See www.bit.ly/1MtQE7a.
The European Commission is consulting until 18 December 2015 on ways to simplify the payment of VAT on cross-border e-commerce transactions in the EU, focusing particularly on small businesses using the mini one-stop shop (MOSS).
The European Commission is consulting until 18 December 2015 on ways to simplify the payment of VAT on cross-border e-commerce transactions in the EU, focusing particularly on small businesses using the mini one-stop shop (MOSS).
In line with the EC’s digital single market strategy, the Commission will make a legislative proposal in 2016 to reduce the administrative burden on businesses arising from different VAT regimes. The Commission has proposed simplification measures, including:
extending the current single electronic registration and payment mechanism to cover the sale of tangible goods;
introducing a VAT threshold to exempt micro-businesses from the new place of supply rules to help online start-ups and small businesses;
allowing cross-border businesses to be audited only by their home country for VAT purposes; and
removing the VAT exemption for the import of small consignments from suppliers in third countries.
The EC notes that as a result of the current MOSS regime, some very small businesses have faced some difficulties, particularly in the UK, where they were previously exempt from VAT up to a threshold. In its original proposal, the EC says it included a VAT threshold to exempt smaller businesses from the changes, but member states rejected that option. The Commission is putting that option forward again in order to support the EU’s start-up and smallest companies.
The consultation, which takes the form of an online survey, opened on 25 September 2015. See www.bit.ly/1MtQE7a.
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