- The EU platform economy generates €25.7 billion in VAT revenue annually, with e-commerce contributing the majority of this revenue.
- The European Commission has adopted the “VAT in the Digital Age” proposal and presented proposals for the most ambitious and comprehensive reform of the Customs Union since its creation in 1968.
- Both reform proposals rely on the concept of the “deemed seller,” which designates platform operators as responsible for declaring and paying VAT on sales they facilitate.
- The deemed seller rules currently apply to two types of e-commerce sales to EU consumers but will be significantly broadened under the proposed reforms. The new e-commerce import regime will eliminate the existing €150 threshold, necessitating platform operators to collect VAT and customs duty on all distance sales of imported goods they facilitate.
- Furthermore, all imported goods will be subject to customs duties, and a simplified method will be implemented to calculate customs duties for frequently purchased low-value goods.
Source Forbes
