The European Commission today announced an agreement reached by the Economic and Finance Ministers of the EU Member States for a new value added tax (VAT) system for companies making online sales into the EU.
According to an EC release, the new VAT system will make it easier for consumers and businesses to buy and sell goods online and across borders, and it will help EU Member States to recoup the current estimated €5 billion of VAT lost on online sales every year.
The new VAT rules will be phased in, so that by 2021 the new measures:
The new rules will provide that VAT is paid in the EU Member State of the final consumer and will implement a new approach to VAT collection in the EU.
Read a December 2017 report prepared by the KPMG member firm in Belgium
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