On Tuesday 24 October, members of the European Parliament’s Committee on Economic and Monetary Affairs (ECON) approved, pursuant to a simplified procedure, the new framework for e-commerce and the revised value added tax (VAT) rules (see EUROPE 13267/8).
This proposal to revise the directive is part of the customs reform presented by the European Commission in May (see EUROPE 13192/18). It stipulates that, from 2028, e-commerce platforms must ensure that customs duties and VAT are paid at the time of purchase.
“It also aims to abolish the threshold of €150 below which goods purchased online by consumers in the EU and goods exported from a third country cannot be declared to the import one-stop shop”, said the rapporteur, Olivier Chastel (Renew Europe, Belgian).
However, products subject to excise duty remain excluded from the scheme. This proposal should reduce compliance costs for businesses and create a level playing field for online sellers.
“The European Commission tells us that with this simplification and this modified system, we could see an increase in VAT revenues because there would no longer be any incentive to underestimate the value of goods”, concluded Mr Chastel.
The report will be put to a plenary vote in November.
To read the report, go to https://aeur.eu/f/8ys (Original version in French by Anne Damiani)