Industry associations concerned by the latest developments on the VAT E-commerce Package

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Five Industry associations have recently co-signed a joint letter to urge Finance Ministers of EU Member States to allow more time to consult stakeholders and prepare a proper impact assessment on recently added provisions before adopting any position on the “VAT e-commerce package”.

Tomorrow, 7 November, the ECOFIN Council is expected discuss the last compromise on the VAT Reform published by the Estonian Presidency on 30 October. New amendments inserted into the Council’s text raise deep concerns from the association and other industry representatives.

Several EU national delegations have insisted along the negotiations on the extension of the scope of the Commission’s proposal by making electronic interfaces (such as platforms, marketplaces and portals) liable for collecting VAT in order to ensure, according to the Estonian Presidency, an effective and efficient collection of VAT in this field.

As stressed in the Industry joint letter, these new provisions will not increase VAT collection or compliance and risk harming e-commerce in Europe by penalizing several small European sellers.

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