On 6 May 2015, the European Commission published a communication on a Digital Single Market Strategy for Europe, which set out various actions, including legislative proposals to make cross border e-commerce easier and reduce burdens due to different VAT regimes.

The Commission recently updated the 2015 tax work programme and confirmed they will work on a proposal for a Council Directive on modernising VAT for cross-border business to consumer e-commerce with a view to adoption in 2015 and 2016.

As part of the proposal it will consider extending the one stop shop to B2C suppliers of goods and removing the VAT exemption for the importation of small consignments with accompanying simplification arrangements. The aim is to break down VAT barriers for cross-border trade, to facilitate the digital single market and provide a level playing field for business.