European Commission Reconsiders Deemed Supplier Regime for Marketplaces to Combat VAT Fraud

• The European Commission is reconsidering the Deemed Supplier Regime for marketplaces.
• This follows French calls to harmonize digital interface liabilities for non-EU sellers.
• The regime aims to address VAT fraud by non-EU sellers.
• Previously, marketplaces were not responsible for EU-resident sellers’ B2C transactions.
• Since July 2021, marketplaces have been responsible for non-EU sellers’ VAT invoicing and collections.
• Shifting VAT obligations to marketplaces could reduce administrative burdens for sellers and tax authorities.
• Concerns exist about compliance issues for non-EU marketplaces handling EU sellers’ VAT.

Source: vatcalc.com

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.

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