VAT

Distance selling: the EU Commission plans to extend the MOSS

The Communication from the Commission to the European Parliament, the Council and the European Economic and Social Committee COM (2016) 148 dated 7 April 2016 showed the intention of the EU to further boost digital economy.

This intention materialised in the presentation of different motions for the implementation of the so-called digital VAT package, where an important role is played by the new regulation on distance selling, on which the EU intends to act in order to avoid possible frauds and displacement of purchases. The EU Commission is mainly aimed at simplifying fulfilments for operators, particularly SMEs operating in this sector. In fact, currently, who sales goods to be taxed in the country of destination must be identified in all concerned Member states, thus implying a high waste of economic resources.

The EU Commission intends to broaden the effectiveness of the MOSS system to make fulfilments easier and to proceed to the creation of a unique VAT environment. The realization of the new system for distance selling will not be immediate and should be completed by end of 2020, so that it can be fully effective from 1 January 2021. Times for implementation may seem quite long, but concerned subjects need to start immediately identifying concrete operating systems, in order to be ready to face this new challenge.

For further information, contact Mario Spera.