Proposition of the European Commission regarding VAT for transactions in e-commerce businesses within the EU

April 4, 2018

The European Commission is expected to set new regulations for e-commerce within the EU. The new regulations will allow businesses selling products online to fulfil their VAT obligations within EU in the country they are operating. VAT imposing processes are expected to be simplified for new and very small businesses, as VAT handling for cross border sales that do not exceed €10Κ will be applied in the country businesses are based. Moreover, small businesses will benefit from simpler processes for cross border sales of a maximum value of €100Κ, facilitating their operation. Measures will be taken also for battling the VAT fraud from non-EU countries and the protection of the European commerce from unfair competition, while member states will be given the opportunity to decrease VAT rates for e-books and online newspapers.