The EU Parliament has approved an amending directive treating online marketplaces as the seller when they facilitate sales of goods with a value up to €150 to customers in the EU by non-EU businesses using their platform. The same will apply to non-EU businesses using online platforms to sell goods from fulfilment centres in the EU, irrespective of their value, allowing tax authorities to collect the VAT due on those sales.
The proposed directive ‘relating to distance sales of goods and certain domestic supplies of goods’ was first introduced by the Commission in December 2018 and agreed by ECOFIN in March 2019. It supplements the general provisions laid down in the VAT e-commerce directive, approved in 2017 and due to enter into force in 2021. The VAT e-commerce directive also extends the existing VAT MOSS into a one-stop-shop (OSS) covering all types of services, as well as intra-community distance sales of goods and distance sales of goods imported from non-EU countries.
The proposed directive sets out rules for determining the place and time of supply, and the information platforms must collect and report in connection with suppliers and sales made. This information must include a breakdown of the VAT due for each member state in which the platform has an establishment, showing:
the total value exclusive of VAT;
the applicable rates of VAT;
the total amount per rate of the corresponding VAT;
the total VAT due on such supplies; and
the individual VAT identification number or tax reference number of each establishment, broken down by member state of consumption.
The EU Parliament’s role on this directive is consultative only and the council will now need to adopt the final version. See bit.ly/333HvPQ.
The EU Parliament has approved an amending directive treating online marketplaces as the seller when they facilitate sales of goods with a value up to €150 to customers in the EU by non-EU businesses using their platform. The same will apply to non-EU businesses using online platforms to sell goods from fulfilment centres in the EU, irrespective of their value, allowing tax authorities to collect the VAT due on those sales.
The proposed directive ‘relating to distance sales of goods and certain domestic supplies of goods’ was first introduced by the Commission in December 2018 and agreed by ECOFIN in March 2019. It supplements the general provisions laid down in the VAT e-commerce directive, approved in 2017 and due to enter into force in 2021. The VAT e-commerce directive also extends the existing VAT MOSS into a one-stop-shop (OSS) covering all types of services, as well as intra-community distance sales of goods and distance sales of goods imported from non-EU countries.
The proposed directive sets out rules for determining the place and time of supply, and the information platforms must collect and report in connection with suppliers and sales made. This information must include a breakdown of the VAT due for each member state in which the platform has an establishment, showing:
the total value exclusive of VAT;
the applicable rates of VAT;
the total amount per rate of the corresponding VAT;
the total VAT due on such supplies; and
the individual VAT identification number or tax reference number of each establishment, broken down by member state of consumption.
The EU Parliament’s role on this directive is consultative only and the council will now need to adopt the final version. See bit.ly/333HvPQ.
