On 6 May 2015, the European Commission published a paper entitled Communication on a Digital Single Market Strategy for Europe. The strategy document includes various proposals with the intention of: providing better online access for consumers and businesses across the EU; creating the right conditions for advanced digital networks and innovative services; and, maximising the growth potential of the European digital economy. The proposals include plans aimed at minimising the burden attached to cross-border e-commerce arising from different VAT regimes around the EU.
In particular, the Commission proposes to extend the “mini one stop shop” (MOSS), currently in operation for digitally supplied services, to tangible goods. This would mean the introduction of a single electronic return for companies to file and pay VAT to their home tax authority irrespective of where their customers are located. That authority would then be responsible for distributing the relevant VAT across the EU as appropriate. The matter will be discussed in the European Council in June.
The Commission’s strategy document “A Digital Single Market Strategy for Europe” can be read here.