Commission published a Single EU VAT Registration proposal


On 8 December, the European Commission published a proposal for a Council Directive on VAT in the Digital Age, aimed to modernise and take full advantage of technological and digital advances to deliver an update VAT system that is more resilient against illegal VAT practices.

More specifically, the legislation puts forward a specific proposal for directive to build on the already existing ‘VAT One Stop Shop’ model for online shopping companies, proposing to extend the OSS to minimise the instances for which a taxable person is required to register in another Member State.

Ecommerce Europe welcomes this legislative proposal, since the need for a ‘VAT One Stop Shop’ 2.0 concept lies on the fact that the 2021 VAT e-commerce package does not address the issue of multiple VAT registration for sellers holding stock in different Member States than their home country of registration. For this reason, the VAT in the Digital Age proposal ensures that businesses selling to consumers in different Member States would only be required to register just once for VAT purposes for the entire EU, and to fulfil their VAT obligations via a single online portal in one single language. A single VRN can be advantageous not only for the European businesses, but also for Member States’ tax administrations, customs authorities, consumers, marketplaces and, last but not least, the environment. Further measures to improve the collection of VAT include making the ‘Import One Stop Shop’ mandatory for certain platforms facilitating sales to consumers in the EU, referred to as “deemed suppliers”.

The proposal will now be sent to the Council of the EU for agreement and to the European Parliament and the Economic and Social Committee for consultation.

Linked to this publication, and building on the previous webinar held on 1 June 2022, Ecommerce Europe is now organising a new hybrid event on 25 January in Brussels to discuss the new legislation alongside policymakers and businesses. The event will focus on the VAT in the Digital Age proposal with a focus on the VAT One Stop Shop 2.0 concept, covering:

  • The broader context of the EU’s VAT in the Digital Age initiative, including the next steps and its adoption into law.
  • The multifaceted benefits of a single EU VAT registration as proposed.
  • The challenges for businesses and governments in implementing the proposal, and how they can be addressed.

During the hybrid Roundtable, Ecommerce Europe would like to provide insights into whether and how the proposed rules could help businesses, consumers & governments, and share ideas regarding the implementation of the proposal and the opportunities & challenges along the road to the rules going live. The meeting will allow for an in-person and remote attendance and will be held in the Residence Palace on 25 January at 16h00 CET, followed by a networking cocktail.

Registration is possible via the following link. In case of more information on the event, please reach out to Stefano Mauro. For information, you can also consult the Campaign’s new website with materials, an informative video and communication tools to raise awareness on the benefits of a Single VAT ID in Europe.