Ecommerce Europe´s feedback on the VAT in the Digital Age proposal

We published our position paper on the VAT in the Digital Age proposal!

Responding to the Commission’s call for feedback, Ecommerce Europe submitted its position in support of the proposal’s aim to deliver a simplified and modernised VAT system in the EU. In particular, we warmly welcome the Single VAT Registration pillar, which falls in line with our Single VAT ID Campaign’s aim to extend the UOSS to cross-border movement of own inventory across the EU and to domestic sales from distribution hubs by a business that is not established in that country.

However, regarding the extension of the deemed supplier regime and a mandatory IOSS scheme for marketplaces, Ecommerce Europe calls for a thorough evaluation of the pros and cons of making the IOSS mandatory, to make sure that the measures further reduce the compliance burden for European platforms rather than increasing them and effectively discouraging marketplace models due too high risks and compliance costs.

We are committed to constructively collaborating with EU policymakers and we encourage the EU Commission and EU countries to consider a phased approach to adopt the proposal. To strengthen the EU Single Market and remove blockers for cross-border trade, the most urgent action is needed to ensure the implementation of the single VAT registration concept, including the introduction of the transfer module and the expansion of the Union One Stop Shop scheme.