The European Commission has issued a report which will look at the VAT exemption for the importation of small commercial and private consignments and what impact it is having on EU businesses…
The European Commission has issued a study on VAT exemption for the importation of small consignments, 4 June 2015
The European Commission has issued a report which will look at the VAT exemption for the importation of small commercial and private consignments and what impact it is having on EU businesses. The SME sector in particular. The report focuses on the legal framework and procedures that were put in place in each of the 28 EU Member states, along with an estimation of the potential VAT foregone by the tax authorities due to the exemption.
EC Commission publishes documents on Digital Single Market Strategy and related VAT strategy, 22 May 2015
The European Commission recently published on its website new documents regarding the Digital Single Market Strategy. The documents also include a section dedicated to the VAT Strategy, which is aimed at reducing the administrative burdens and obstacles currently arising from the current VAT regimes for businesses selling both online and offline across the EU.
The Commission intends to make legislative proposals next year (2016) to reduce the administrative burden for business, including:
- Extending the current single electronic registration and payment mechanism to intra-EU and 3rd country online sales of goods, i.e. extending the Mini-One-Stop-Shop Scheme to the cross-border supply of goods to private individuals;
- Introducing a common EU-wide simplification measure (VAT threshold) to help small start-up e-commerce business. This follows on from proposals made by HMRC regarding same;
- Introducing a method under which the Member State of registration of the supplier under the MOSS scheme may carry out a single audit of cross-border businesses for VAT purposes; and
- Removing the VAT exemption for the importation of small consignments from non-EU suppliers to private individuals in the EU.
Currently, non-EU suppliers are not required to account for import VAT on the importation of goods into the EU to private individuals when the value of the goods is less than €22. This is currently putting non-EU businesses at a competitive advantage over EU suppliers and market distortions have been signalled in various Member States. It is estimated that ca. €4.5 billion in turnover for EU businesses is lost annually due to this scheme.
Under the proposals, the EU intend to remove this VAT exemption on the importation of small consignments, and as a result, would require non-EU suppliers to register in the EU for VAT purposes under a simplified scheme like MOSS.
A link to the document issued by the EC can be found here:
http://ec.europa.eu/priorities/digital-single-market/docs/dsm-communication_en.pdf
http://europa.eu/rapid/press-release_MEMO-15-4920_en.htm
http://ec.europa.eu/priorities/digital-single-market/docs/dsm-swd_en.pdf
The EC issues a reasoned opinion against France, 1 April 2015
The European Commission has asked France to apply the normal rate of VAT to products of agricultural origin that aren’t meant for use in food products or in agricultural production. According to French law, particular products used in the production of non-food industrial products have a reduced VAT rate.
However, the European Commission have issued a reasoned opinion. France has two months to notify the EC of its attempts in changing its legislation or the matter will be referred to the European Court of Justice.
MOSS 2015 Changes Explained, 18 March 2015
The final report on VAT 2015 rules for telecom, broadcasting and e-services is now available on the Taxation and Customs website: http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm#infosel
A complete summary overview is also available. As well as this there is information for micro businesses supplying electronic services.
