- A new draft law in Belgium aims to enforce the collection of VAT on e-commerce transactions.
- The law would impose joint liability on marketplaces and platforms that facilitate the supply of goods within Belgium.
- This joint liability would apply to all business-to-consumer transactions that are not subject to the deemed supplier rule.
- Marketplaces and platforms would need to set up due diligence processes to manage their joint liability risks.
- The deemed supplier rule was introduced at the EU level to ensure the effective collection of VAT on e-commerce activities.
- Article 205 of the VAT directive allows member states to designate a person other than the primary VAT payer as jointly liable for VAT.
- The new draft legislation would extend joint liability provisions to taxable persons using electronic interfaces to facilitate supplies.
- Electronic interfaces would only be jointly liable if they have not acted in good faith or have committed any fault or negligence.
- The legislation would impose minimal obligations on marketplaces and platforms to verify VAT identification and respond to notices from tax authorities.
- The compliance burden on electronic interfaces would increase significantly if the measure is adopted.
Source: taxathand.com
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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
