On 1 December, the European Commission proposed new VAT rules, including:

- New rules allowing companies that sell goods online to deal easily with all their EU VAT obligations in one place;

- To simplify VAT rules for startups and micro-businesses selling online, VAT on cross-border sales under €10,000 will be handled domestically. SMEs will benefit from simpler procedures for cross-border sales of up to €100,000 to make life easier;

- Action against VAT fraud from outside the EU, which can distort the market and create unfair competition;

- To enable Member States to reduce VAT rates for e-publications such as e-books and online newspapers.

These legislative proposals will now be submitted to the European Parliament for consultation and to the Council for adoption.

Click here for more details.