Modernising VAT for cross-border e-commerce: Commission launches public consultation

The European Commission has launched a public consultation to help identify ways to simplify VAT payments on cross-border e-commerce transactions in the EU. The Commission is seeking to receive a wide range of views from business owners and other interested parties before it drafts its legislative proposals on the topic in 2016, as part of the Digital Single Market strategy. This consultation is also part of the ongoing assessment of the new rules for VAT payments on cross-border telecommunications, broadcasting and electronic services which came into force last January. Andrus Ansip, European Commission Vice-President for the Digital Single Market, said: “We promised to support companies, and especially smaller ones, to reduce burdens arising from different VAT regimes. Today we ask businesses and other stakeholders to help find the most effective and meaningful ways of delivering on this promise.” Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs said: “This consultation presents a real opportunity to ensure that future VAT revenues from the digital economy are distributed fairly and effectively. We also have an interest in ensuring that future legislation reflects the reality for businesses across the EU.” The consultation will run for 12 weeks and ends on 18 December 2015. A press release is available here.