VAT News

EU-Opposition to e-commerce proposals

In proposals first launched in 2016, the EU seeks to make changes to VAT legislation in attempt to simplify VAT compliance in the e-commerce industry.

One of the key components of the proposals was to make the e-commerce selling platforms, such as Amazon and Ebay liable in some way for remitting VAT due on imported goods, thus reducing non-compliance by non-established traders, and reducing administration for the tax authorities.

Whilst it has been suggested that the platforms could be responsible for declaring VAT on these goods, both Amazon and Ebay are said to oppose this.

Amazon are reported to be taking the approach of a withholding or split payment system could be operated so that traders effectively pay tax due automatically. Ebay on the other hand wholly oppose any such plans to involve platforms in the compliance process, and indeed see the proposals as largely negative for small businesses, also citing a lack of economic impact assessments.

Discussion around the proposals is ongoing, and full agreement between the EU member states would be needed to implement any legislative changes. At a recent meeting the idea of a withholding scheme was rejected by some member states, and it would seem that there is some way to go until agreement is reached.

Related articles

HMRC: No VAT on e-Publications for UK Citizens as of 1 May 2020

HMRC has scrapped VAT completely off e-books and e-publications from 20% down to 0%. In an effort to make reading more accessible for the UK public while in self-isolation due to the Coronavirus, HMRC fast-tracked the motion and implemented it seven months ahead of schedule. 

Read more
COVID-19 VAT tips for businesses

These COVID-19 VAT tips for businesses will help companies around the world boost liquidity in times of economic challenges. Learn how to harness VAT refunds and compliance.

Read more
COVID-19 VAT Cashflow Tips (Part Two)

COVID-19 is affecting business in ways no one thought possible. In order to free yourself from the burden of cashflow worry, we’re trying to do our bit to advice you on ways you can inject income into your bottom line.

Read more