The bill on the implementation of guidelines for electronic commerce has been passed by the House of Representatives.
Under current rules intra-Community distance sales are often taxed in the seller’s Member State. The consumer’s Member State is usually only allowed to charge if a certain annual turnover threshold has been exceeded. From the entry into force of the bill, intra-Community distance sales will be taxed in the consumer’s Member State. This is the Member State where the goods are located at the time of arrival of the shipment or transport to the customer.
Limitation of tax increase
The entrepreneurs concerned will therefore have to submit VAT returns much more often than now in all Member States where they supply goods to consumers. However, the legislator wants to avoid increasing the administrative burden as much as possible. That is why entrepreneurs can choose an alternative from the entry into force. In doing so, they declare the foreign VAT on internet sales in their own Member State. Payment is made through the one-stop shop. The tax authorities of the member states will then offset the VAT paid among themselves.
Source Taxence
