Group S&D –  PRESS RELEASE

Brussels, Thursday 1 December 2016

S&D Euro MPs today welcomed the VAT rules proposed by the European Commission to make life easier for e-commerce and online businesses in the EU, and called on EU member states to support them.

S&D Group spokesperson on economic, financial and tax issues Pervenche Berès said:

« It is clear that the VAT rules had to be modernised in order to respond to the needs of the digital economy and the increased complexity of business structures in the EU.

« These proposals will simplify VAT rules for start-ups and micro-businesses selling online. The VAT one-stop shop for e-commerce will help to increase compliance. It will reduce compliance costs as well as reducing VAT fraud, estimated at €5 billion in lost VAT on online sales every year.

« We are pleased that the Commission is taking action against fraud coming outside from the EU. It is crucial to ensure fair competition with our external competitors.

« We also welcome the Commission’s proposal to allow member states to harmonise VAT rates on e-publications such as e-books and online newspapers. This was a request from the European Parliament and once the proposal is adopted by the member states it will bring equity with taxes on printed publications.”