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The European Commission launches public consultation on modernizing VAT for cross-border e-commerce

The European Commission has launched a public consultation to help identify ways to simplify the VAT payments on cross-border e-commerce transactions in the EU.

The European Commission promised to support businesses to reduce the VAT compliance burdens and is working to provide a level playing field for EU companies and ensure that VAT revenues flow to the country of actual consumption. The aim is to propose new legislation in 2016. The consultation launched will feed into preparations for these important proposed measures.

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 2015.

The Commission is keen to gather feedback on the associated Mini One Stop Shop (MOSS), under which businesses that sell digital services to customers in more than one EU country are allowed to declare and pay all their VAT in their own Member State.

The consultation will end on 18 December 2015.

For further information see the press release of the European Commission.

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