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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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EU Commission sets out plans to modernise VAT for cross-Border E-commerce

The Commission has launched proposals to modernise the VAT system for cross-border e-commerce. The proposals include setting thresholds of €10,000 and €100,000 for cross-border supplies of electronic services by 2018 and extending the Mini One Stop Shop for electronic services concept to all online supplies of goods and to all cross-border services to end-consumers in 2021.

The proposals include:

  • New rules allowing companies that sell goods online to deal easily with all of their EU VAT obligations in one place;
  • Simplified VAT rules for start-ups and micro-businesses selling online; whereby VAT on cross-border sales under €10,000 will be handled domestically. SMEs will benefit from simpler procedures for cross-border sales of up to €100,000;
  • Action against VAT fraud from outside the EU;
  • Reduced VAT rates for e-publications such as e-books and online newspapers.

The Commission’s press release noted that these legislative proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.