VAT Digital Single Market: ECOFIN adopts directive amending Directive 2006/112/EC

Released 05 December 2017

A directive and two regulations modernising VAT for cross border e-commerce were adopted by ECOFIN on 5 December 2017.

The e-commerce package – a directive amending Directive 2006/112/EC and two regulations – was adopted without discussion at the meeting of the European Parliament’s Economic and Financial Affairs Council of 5 December 2017 in Brussels, after the European Parliament gave its opinion on 30 November 2017. The new rules, which will progressively come into force by 2021 will ensure that VAT is paid in the Member State of the final consumer and will help to cement a new approach to VAT collection in the EU, already in place for sales of e-services, and fulfil a core commitment of the Digital Single Market (DSM) strategy for Europe. The One Stop Shop for sales of online goods is due to come into effect in 2021 to give Member States time to update the IT systems underpinning the system.

Full text of the proposal (01/12/2017).

Read the press release: VAT: Commission welcomes agreement on simpler and more efficient rules for businesses that sell goods online.

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