The proposals aim to simplify and modernise the VAT rules on e-commerce between now and 2021.
The European Commission has released its proposals to simplify and modernise the VAT rules on e-commerce in stages between now and 2021. The changes will initially introduce thresholds for small businesses and simplified rules under the mini-one stop shop (MOSS) compliance scheme. These will be followed by an extension of the MOSS to include B2C goods and other services, along with the removal of distance selling thresholds and low value consignment relief for imported goods. As with the introduction of the 2015 rules, we are likely to see detailed implementing regulations; however, now is the time to begin assessing the impact of these changes on businesses.
In a recent article for Tax Journal*, Laura Gowland, a manager in KPMG in the UK’s indirect tax team, takes a look at the proposals in more detail, along with a consideration of what businesses should be doing now to prepare for the changes.
* First published in Tax Journal on 10 February 2017. Reproduced with permission.
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