- Digital marketplaces like Amazon, Alibaba, and eBay have revolutionized e-commerce by allowing businesses to sell their products to customers in different countries. This has led to a significant increase in cross-border transactions. These platforms have particularly benefited small and medium-sized businesses, as they offer a less bureaucratic alternative to opening physical stores in multiple countries.
- However, the rapid growth of these digital marketplaces has also presented legal and technological challenges. Regulators are struggling to develop effective legislative frameworks to keep up with this new business model.
- In particular, Amazon has the power to suspend a seller’s account for various reasons, including non-compliance with VAT rules. The implementation of the e-commerce package in July 2021 has further increased the liability requirements for platforms.
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Source 1stopvat
