Proposal for a COUNCIL DIRECTIVE amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain value added tax obligations for supplies of services and distance sales of goods

1. This package of three proposals grouped under the title “Modernising VAT for cross-border B2C e-commerce” aims to overcome VAT barriers to cross-border supplies of goods and services to non-business consumers. Changes are envisaged in two tranches with implementation in either 2018 or 2021.

2. Key elements for 2018 focus on the improvement of the current system for cross border sales of digital services. These changes include:

• The introduction of an annual value threshold for digital services supplied cross-border within the EU, under which taxation will continue to take place where the business is based, rather than in the Member State of the customer. The lack of a threshold is currently a disincentive for smaller businesses to expand to supply such services cross-border. (COM(2016) 757)

• Simplification of the existing Mini One Stop Shop (MOSS) to allow users to continue to comply with their home Member State’s rules for invoicing and record keeping. (COM(2016) 757). Users with cross-border supplies of less than €100,000 per annum will need to obtain only one piece of evidence to identify where their customer is based. (COM(2016) 756)

Topic  Tax 
Department  HMT 
Council Reference  14820/16 
COM Reference  COM(16)757 
SEC Reference   
PE Cons   
C Reference   

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