On December 7, 2022, it is expected that the EU Commission will publish its proposals on ”VAT in the Digital Age”. This will include proposals on
- Digital Reporting Requirements (DRRs);
- The VAT Treatment of the Platform Economy; and
- The Single VAT Registration and Import One Stop Shop (IOSS).
In a countdown towards November 16, we will publish a number of interesting facts around ”VAT in the Digital Age”. This one is on the ”Single VAT Registration and Import One Stop Shop (IOSS)”.
The analysis of the current situation identified two main problems. First, businesses are often obliged to VAT register in Member States where they are not established. Second, the growth in distance sales of imported goods means that VAT rules must be complied with and controlled for an ever- increasing volume of consignments. The same two drivers cause both of these problems. One of these relates to evolving technology and business models, in particular digitalisation and the explosion in e-commerce, which is making the types of transactions that trigger VAT registration more prevalent. The other driver stems from the complexity of VAT registration and reporting obligations in the EU and discrepancies between Member States in how the relevant provisions are applied.
For more info see Link– Page 26 – 27
See also in this serie
Digital Reporting Requirements
- Part 1: 13 Member States require all B2G invoices to be issued and transmitted as structured e-invoices over a specific platform
- Part 2: Implementation of DRR lead to net annual benefits of about EUR 8 billion
- Part 3: Digital Reporting Requirements – What is the problem?
- Part 4: DRR Policy options – Will it be Option 4a? Partial harmonisation. An EU DRR is introduced for intra-EU transactions
- Part 5: Types and features of the EU Digital Reporting Requirement
Platform Economy
- Part 6: Platform Economy – Types of Platforms
- Part 7: Platform Economy – Scale of the platform economy – Estimated VAT revenue from digital platforms is EUR 26 billion
- Part 8: Platform Economy – Legal issues
- Part 9: Platform Economy – What is the problem?
- Part 10: Platform Economy – Policy Options
- Part 11: Platform Economy – Comparison of Policy Options
Single VAT Registration and Import One Stop Shop (IOSS)
