06 December 2017 EU agrees on new VAT rules for online trading The European Union (EU) has agreed on new rules to simplify value added tax (VAT) compliance obligations for e-commerce in goods to support the digital economy by accelerating growth for online businesses, in particular start-ups and small and medium enterprises. The changes will progressively come into force by 2021. Key measures include: (i) a single point of VAT registration for online sales, (ii) removal of the current exemption from VAT for imports of small consignments worth not more than €22 from outside the EU, and (iii) simplified rules for businesses with cross-border sales of less than €100,000. In addition, large online marketplaces will be responsible for ensuring VAT is collected on sales on their platforms. Document ID: 2017-2067 |
