Europe's largest e-commerce retailers call on EU to simplify VAT rules

Recently, Ecommerce Europe and EuroCommerce, the largest e-commerce retail branches in Europe, jointly called for a unified VAT registration in the EU. These organizations said that the current EU VAT rules do not apply to sellers who store and sell goods in multiple countries or regions .

Ecommerce Europe and EuroCommerce voiced their concerns about VAT in a joint document last month and recently launched a new website advocating for a simplification of EU VAT rules .

On the homepage of their website, the agencies call for "making VAT apply to all EU businesses."

It is reported that although the current EU VAT rules have made it easier for e-commerce companies to register, submit and pay VAT for multiple EU countries through one member state , the current EU VAT system still omits an important aspect of EU trade, putting millions of small and medium-sized enterprises at a disadvantage.

Ecommerce Europe and EuroCommerce say that if a cross-border seller wants to place their inventory in different EU countries , they must register for VAT in each country where the inventory is stored. In the 21st century VAT system, this rule is expensive, time-consuming and completely unnecessary.

According to the website , the average VAT registration process requires the submission of 13 documents and it takes about 100 days to register a VAT number . This is very expensive and time-consuming for sellers selling across multiple EU countries.

Therefore, Ecommerce Europe and EuroCommerce called for the simplification of VAT rules. According to the advocacy of these organizations, they hope that the relevant EU institutions can extend the existing VAT one-stop service system to all goods transactions where the seller is not in the EU tax country .

According to the advocates, they hope to forge a new VAT rule that would enable businesses selling remotely to have a single EU VAT registration and report all VAT through a single digital VAT portal across their entire EU logistics chain – from sourcing and stock placement to sale to the final consumer.

Currently, negotiations between the organization and relevant EU institutions are underway. Ecommerce Europe and EuroCommerce have expressed the hope that the new EU VAT rules can be revised and implemented before 2023.

European Union

VAT