EC: Conclusions on the execution of the VAT e-commerce package were accepted by the Council
The European Union’s Council agreed steps on March 15 to execute the VAT e-commerce package, which took effect on 1 July 2021.
The package contains provisions that would:
- Establish simplified VAT laws for cross-border e-commerce
- Update tax regulations to address the digital economy’s tax issues
- Streamline the administrative procedure to fight tax fraud
- Remove the EUR 150 threshold for the implementation of the import one-stop-shop (IOSS) scheme
- Extend the one-stop-shop (OSS) system to all business-to-business transactions
- Launch the Digital Age Initiative, which will standardize digital reporting criteria
Furthermore, the Council of the European Union calls attention to the Commission to ensure that all proposals it intends to submit to the Council are fully assessed in terms of their economic, administrative, social costs, benefits for taxpayers and tax authorities including their impact on EU and Member States’ IT capacities and corresponding required implementation periods, as well as on fundamental rights such as data protection.
Source: consilium.europa.eu
