VAT – The Future for the EC Digital Single Market
The EC has announced its plans for its VAT digital single market in respect of online sales. Full details are here and here.
The highlights are:
• Extension of MOSS to intra-EC and third country online B2C sales of goods.
• Introduction of a new EC-wide VAT threshold to help start-up businesses.
• Ending current distance selling thresholds.
• Allowing for domestic controls, including a single audit of cross-border sales.
• Removal of the VAT exemption for the import of small consignments form third countries.
• Removal of barriers to cross-border sales eg; geo-blocking and costs.
This is likely to have a huge impact on the way businesses deal with VAT on sales of goods to individuals overseas. If the introduction of MOSS is anything to go by, we may be in for a bumpy ride.