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New VAT rules are good news for online businesses – EU member states should endorse them, say S&Ds


01 Dec 2016


Euro & Finance

S&D Euro MPs today welcomed the VAT rules proposed by the European Commission to make life easier for e-commerce and online businesses in the EU, and called on EU member states to support them.
S&D Group spokesperson on economic, financial and tax issues Pervenche Berès said:
"It is clear that the VAT rules had to be modernised in order to respond to the needs of the digital economy and the increased complexity of business structures in the EU.
"These proposals will simplify VAT rules for start-ups and micro-businesses selling online. The VAT one-stop shop for e-commerce will help to increase compliance. It will reduce compliance costs as well as reducing VAT fraud, estimated at €5 billion in lost VAT on online sales every year.
"We are pleased that the Commission is taking action against fraud coming outside from the EU. It is crucial to ensure fair competition with our external competitors.
"We also welcome the Commission’s proposal to allow member states to harmonise VAT rates on e-publications such as e-books and online newspapers. This was a request from the European Parliament and once the proposal is adopted by the member states it will bring equity with taxes on printed publications.”



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