1. Introduction
For many years, the EU Commission tried and failed to simplify and amend the current legislation on e‑commerce. This failure was due to the resistance of (some) EU Member States. However, on 05.12.2017, the EU Finance Ministers unexpectedly approved measures proposed by the EU Commission one year ago. Some of the rules will be effective as of 01.01.2019. Most of the rules will not enter into force before 01.01.2021. Many measures will be implemented as a result of the amendment of the VAT Directive. Two regulations will supplement CIR 282/2011.
2. Amendments as of 01.01.2019
As of 01.01.2019 simplifications will be implemented for companies rendering supplies of telecommunication services, broadcasting services and electronically supplied services. The following amendments will apply:
3. Amendments as of 01.01.2021
As of 01.01.2021 extensive simplifications for distance sales will enter into force. In particular, the following changes will occur:
Additionally, the MOSS rules will be amended as follows:
4. Consequences
The adopted measures are to be welcomed. They will remove existing obstacles. Nevertheless, many challenges remain. Taxpayers will have to deal with the current rules in place until 01.01.2019 or 01.01.2021. The new threshold for telecommunication, broadcasting and electronically supplied services may result in companies exceeding the threshold without noticing it. Then, they will have to register retroactively, causing significant additional costs. This is especially true because a registration for MOSS can only be made for the future. Eventually, only those distance sale operators dispatching their goods from a central warehouse within the EU will be able to register for MOSS purposes. Sellers participating by transferring stock between warehouses in various EU Member States will not be able to declare the transfer of the goods via MOSS. They will still need to register in the respective Member State. The transfer between EU Member States triggers an intra-Community acquisition in the respective EU Member State. The acquisition, in turn, requires taxpayers to register in the respective EU Member State in order to register for VAT purposes.
Contact person:
Matthias Luther, L.L.M. Tax
Lawyer
Phone: +49 211 54095395
matthias.luther@kmlz.de
As per: 13.12.2017