Commission proposal on VAT in cross-border e-commerce

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The European Commission is committed to ensuring the free movement of goods and services and ensuring that 'individuals and businesses can freely use online services under conditions of fair competition'. As regards the current VAT rules, the May 2015 Communication "A strategy for a Digital Single Market in Europe"1 and the April 2016 Communication on a VAT Action Plan: "Towards a common EU VAT area - Time to decide"2 high priority to removing barriers to cross-border e-commerce resulting from burdensome VAT rules and an inherent lack of neutrality that hurts EU businesses. The proposals will modernize the current VAT rules for e-commerce and help future-proof VAT.