E-commerce continues to grow, and tax authorities globally have struggled to keep pace. Tax authorities developed many VAT systems before the advent of e-commerce in its current format and the evolution of the internet. Around the world this has resulted in changes to ensure that taxation occurs in the way that the government wants, removing distortions of competition between local and non-resident businesses.
The European Commission made changes on 1 July 2021 with the E-commerce VAT Package, which modernised how VAT applies to e-commerce sales and also how the VAT is collected. As the previous system had been in place since 1 July 1993, change was well overdue.
Source: SOVOS
Latest Posts in "European Union"
- Comments on ECJ C-121/24: Non-payment of declared VAT does not constitute VAT fraud
- European Parliament Approves Simplifications to Carbon Border Adjustment Mechanism (CBAM)
- Comments on ECJ C-472/24: In-game gold: AG Kokott’s advice on VAT exemption, vouchers & margin scheme
- AG Kokott’s Opinion: VAT Exemption, Vouchers, and Margin Scheme for In-Game Gold Trading
- EU Reaches Agreement on 2028 Customs Reform
