The EU has announced new rules to help e-commerce businesses simplify how they account for VAT.
The new rules are applicable to businesses selling both goods and services on a B2C basis and are intended to have effect at various stages up to 2021. They are part of the EU’s Digital Single Market strategy.
According to the EU, nearly €5 billion of VAT revenue is lost each year because of non-compliant e-commerce businesses, an amount that will likely continue to grow as the e-commerce sector increases in size. The EU therefore intends to make changes to help e-commerce companies enjoy simplified compliance burdens but also to tackle VAT fraud.
An outline of the changes is given here: