The European Commission has said that it intends to 'improve the VAT environment' for E-commerce businesses in the EU, which will enable consumers and companies to 'buy and sell goods and services more easily online'.
The new rules will 'ensure that VAT is paid in the Member State of the final consumer, leading to a fairer distribution of tax revenues amongst EU countries', the Commission said in a statement.
It noted that the move will save businesses across the EU as much as €2.3 billion a year, with estimated lost revenues set to reach €7 billion by 2020 if no action is taken.
The move will also target VAT fraud from businesses outside the EU, as well as enable Member States to reduce VAT rates for e-publications such as e-books and online newspapers.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.