For some time now, there has been a lot of talk about the changes to VAT for online trade proposed by the European Commission. These changes will mostly concern micro-enterprises, the so-called start-ups and small and medium-sized enterprises, but what is important, their clients will also benefit from the changes.
VAT settlement - the basic change is to apply to VAT settlements: after introducing the changes, the entrepreneur will be obliged to make quarterly settlements in the end country of his/her international trade, and not as before, in each of the countries where the transactions were made. This solution is to help entrepreneurs save money spent on VAT in each country of jurisdiction, but also to save on tax handling by international assistants. An additional improvement will be an Internet platform prepared specifically for handling VAT. Importantly, the platform is to support the entrepreneur's mother tongue.
VAT fraud limitation - some changes will also come in connection with scam and fraudulent charges of the VAT for the goods from outside the European Union with a value below 22 Euro. This solution will contribute not only to the correct marking of foreign shipments and their value, but will also ensure the comfort of shopping for customers who have so far lost money on the purchase of foreign goods by making additional customs fees, etc.
Written word taxation - the draft of the changes to VAT also includes changes in taxation of the written word, also in its electronic form. Until now, the lowest VAT was charged to paper versions of books and all magazines. With the new amendment, VAT would be reduced in the case of electronic media of the written word, i.e. audio and e-books. Such a situation would certainly please not only library merchants, but many "bookworms".
Trade in the UK - there is one more important aspect to the proposed changes. Entrepreneurs who plan to operate online in the UK will be covered by the new regulations. The first is the lack of obligation to reside in the territory of the United Kingdom in the case of online commerce, and the second is the inclusion of European Union law on the settlement and payment of VAT on services and goods sold throughout the European Union.