- In 2023, annual consumer spending through online retail platforms in the USA reached $1.12 trillion, with Europe expected to hit €800 billion by 2028, presenting a significant challenge for tax authorities to effectively collect VAT/GST and customs duties.
- Since July 2021, EU online marketplaces must account for VAT on goods valued under €150 sold by non-EU sellers, ensuring tax is paid to the EU authorities where goods are delivered, alongside new measures to enhance VAT compliance under the VAT in the Digital Age package agreed upon in November 2024.
- The evolving digital business models complicate VAT reporting due to their non-linear nature, necessitating a fresh approach to compliance to ensure the correct amount of tax is collected, which A&M can assist businesses with through their extensive expertise in retail and e-commerce sectors.
Source Simon Baxter
