Following the launch of the Single VAT ID Campaign in October 2021, Ecommerce Europe and EuroCommerce are now organizing a hybrid event on 1 June to discuss with the European Commission the legislative proposal that will come out in October 2022.
Named “VAT in the Digital Age”, the proposal for directive will table three options for expanding the One Stop Shop introduced by the VAT E-commerce Package on 1 July 2021:
- Introducing a Single EU VAT Registration,
- Eliminating the €150 threshold for marketplace VAT liability,
- Making the Import One Stop Shop mandatory.
Ecommerce Europe will focus on the first strand of the legislative proposal, focusing on introducing a Single EU VAT Registration for all pan-EU inventory movements, which falls in line with the Campaign.
The need for such a single VAT registration lies on the fact that the 2021 VAT rules for e-commerce sales to consumers do not address the issue of VAT registration for sellers holding stock in multiple Member States in order to be as close as possible to the consumers. In practice, e-merchants still have to maintain their foreign VAT registrations in every EU country where they are sending or holding stock. To address this issue, Ecommerce Europe and EuroCommerce recommend policymakers to extend the existing VAT OSS to all shipments of merchandise where the seller of record is not located in the EU country of taxation, and in particular to:
- cross-border movement of own inventory across the EU,
- domestic sales from distribution hubs by a seller that is not established in that EU country.
Now, titled “VAT in the Digital Age: Single EU VAT registration roundtable”, the hybrid event that Ecommerce Europe and EuroCommerce are organising on 1 June aims to table an insightful discussion with the European Commission, VAT experts, Council representatives and businesses alike, in order to feed the work of DG TAXUD ahead of the next VAT expert meetings and internal discussions leading to the publication of the proposal in October 2022. More specifically, the meeting will cover:
- The broader context of the EU’s VAT in the Digital Age initiative including lessons learned from the 2021 Ecommerce Package
- The multifaceted benefits of a Single EU VAT Registration
- Which use cases single EU VAT Registration needs to address to be effective for EU businesses
- The challenges to achieving the reform and how they can be addressed
Organised in Brussels, the meeting will allow for an in-person and remote attendance and will be held in the Residence Palace on 1 June from 16h30 to 17h30, 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.