CONNECT WITH US
eCommerce

eCommerce

European Council approves VAT simplification for online sales

Ecommerce News EU logo

Published on

Add as a preferred source on Google
European Council approves VAT simplification for online sales

The Council of the European Union has agreed on further measures to improve VAT collection on online sales in the EU. According to their proposal, the digital VAT Import One Stop Shop (IOSS) will need to be expanded. In the future, platforms and suppliers will be able to account for VAT on high value goods on this system as well.

This was announced in a press release yesterday. Earlier this year, the Council also approved new customs rules for imported parcels. As of July 1st this year, parcels valued at up to 150 euros are now paying customs duties. Now, the Council also wants to improve VAT collection. This could lead to better tax compliance and collection.

Currently, non-EU online sellers can use the IOSS for the VAT they need to pay on sales into the EU. They only need to register in one member state, not in all countries where they sell to. With the IOSS, they can take care of their VAT obligations for the entire EU. This system can only be used for parcels with a lower value than 150 euro.

Non-EU sellers only need to be registered in one member state in the EU for the IOSS

The Council now wants to extend the use of the IOSS to all goods, irrespective of their value. If Parliament approves, businesses will be able to use the IOSS for parcels with values higher than 150 euros as well.

Additionally, the VAT IOSS will also cover online sales of goods that are already stored in customs warehouses in the EU, by non-EU sellers.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.