E-Commerce With and To the European Union

The rise of the digital economy has forced policy makers all over the globe to deal with some of the fundamental issues of taxation. There has been an avalange of tax proposals to further facilitate cross border trade but also to ensure that all companies: traditional and digital, are paying their fair share.

A few of the recent proposals of the European commission will have severe impact on any and all web shops, online platforms and market places that sell or facilitate sales in or to the European Union.

Under the first package VAT modernisation rules for cross border e-commerce will be introduced as per 1 of July 2021. Under these new rules digital market places will be responsible for collecting VAT on the sale of goods to EU consumers. Business may consider using the One-Stop- Shop declarative (OSS) system for their reporting obligations.

Under the second proposal (DAC7) platform…