One year ago, the European Commission announced plans to create a digital single market within the EU, in order to stimulate cross-border e-commerce. As a result, the Commission adopted a so called “Actionplan on VAT” on 7 April 2016. It is intended to ‘adapt the VAT system to the digital economy and the needs of SMEs’. For retailers, this means that VAT declarations on cross-border sales can be done in their home country. Also, the threshold for applying local VAT will be the same in all EU countries. This will take away important barriers for online retailers to step into cross-border e-commerce and will reduce costs signifantly.
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