Draft Finance Law 2020 – Implementation of the E-Commerce VAT Directive

Source BMF

VAT digital package

The second stage of the so-called VAT digital package will be implemented.
These EU- wide measures contribute to a significant simplification and a reduction in bureaucracy for companies that carry out corresponding services in several EU member states . At the same time, the implementation secures the tax revenue.
By expanding the range of services at the central contact point, the mini one-stop shop becomes a one-stop shop . Thanks to the central contact point, online retailers in particular no longer have to register their customers for VAT in every EU member state.

The range of services is for companies based in the EU who provide radio, television or telecommunications services (Section 3a Paragraph 5 of the Value Added Tax Act), for deliveries within a member state, intra-community distance sales and all services performed at the place of consumption to non-entrepreneurs with their registered office or residence in the EU expanded.

To the sharp rise in international e-commerce is to account for distance sales of goods in shipments from countries outside the EU with a tangible value to 150 euros, a new import one-stop shop ( IOSS) introduced. This enables – as an alternative to the collection of import sales tax by the customs administration – a simple and efficient collection of sales tax on shipments imported into the EU.
In addition, existing distortions of competition to the detriment of EU-based dealers will be reduced.

---

---