A lot of people might not know but VAT returns and paying VAT in EU countries could become simpler and more digitalised. This, for e-commerce, could mean that common business models will also be considered in the future. However, what was intended with the VAT reform for e-commerce in 2021 through the One-Stop-Shop (OSS) could now be achieved, simplification of meeting VAT obligations.

E-commerce, in 2021 was turned upside down in terms of VAT due to the biggest EU VAT reform in the last decades. Yet the limitations of the new One-Stop-Shop soon became clear for e-commerce sellers. The desired simplification of VAT, in practice, compliance for cross-border sales was not as helpful as expected. Fortunately, the good news is that the challenges for VAT-payers have been recognised, and possible solutions will be focused on in 2022.

Clearly, the digital economy and the development of new business models pose new challenges for tax administrations. Therefore, it should now be focused on how tax administrations can increasingly use digital technologies to combat tax fraud, reduce administrative burden for tax administrations, and also reduce the costs of tax obligations for companies. Additionally, the EU Commission is examining whether the current VAT regulations are adapted to businesses in the digital age.

Sadly, the economic situation during the pandemic and the resulting tax losses have increased the need for action by the member states, so more and more EU countries are striving for a solution of their own. Also, new rules for a deemed supplier for VAT purposes were introduced for the distribution of goods via an electronic interface. Additionally, e-commerce always has to be compared to traditional trade. Hence, an unequal tax treatment could lead to advantages or disadvantages in competition. It is not wrong to say that for e-commerce sellers such developments are of great interest if goods are being sold via electronic platforms. Therefore, whether and to what extent the existing rules for the supply of goods will be or will have to be adapted in the future, will be known in the future.

Group Futurista is glad to present to you the opportunity to learn more about Automated VAT for E-commerce and the benefits it can entail for your business by joining the 'Future of Automated VAT for E-commerce' virtual summit with revolutionary keynotes, case studies, and an amazing selection of industry-leading speakers who will come together to share their valuable insights.