Commission proposes new VAT rules to support e-commerce and online businesses in the EU

Written by Christoph Zenner 2 December 2016


Yesterday, the EU Commission has introduced a series of proposals to simplify the VAT rules for e-commerce and reduce compliance on online sales of goods.

The proposals include:

  • Broadening of the One-Stop-Shop system to companies selling goods online (distance sales);
  • Thresholds for cross-border sales of electronic services;
  • Removal of the VAT exemption for small value consignments;
  • Possibility for Member States to align the VAT rates on electronic and printed publications.

These proposals follow up on the commitments made by the EU Commission in its Digital Single Market strategy for Europe and the Action Plan towards a single EU VAT area. These proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.

For more information, read the press release or read more on the Digital Single Market and the proposals to modernise VAT for cross-border e-Commerce.

In case you have any further questions on this topic, please don’t hesitate to contact Sophie Claessens.