TAXATION : VAT: TOWARDS A ONE STOP SHOP FOR ALL ELECTRONIC SERVICES.

On 13 January, the European Commission asked the member states to adopt the necessary measures in order to establish, on 1 January 2015, a one stop shop' system, which will simplify the formalities that all providers of electronic, telecoms, radio and TV broadcasting services must fill in for value-added tax (VAT).

The Commission has proposed changing Regulation (EU) 282/2011, which lays down implementing measures for Directive 2006/112/EC. The aim is to extend to service providers established in the EU, as well as to telecoms and TV and radio broadcasting services, the application of the one stop shop' regime, which companies based in third countries but delivering electronic services in the EU have already been benefitting from since July 2003.

In order to reduce their administrative burdens, the companies can identify in a single declaration on their website all the transactions they carry out in the EU.

Based on the information provided, the VAT, which is subsequently collected, is automatically shared between the various member states where the tax is owed.

Extending this system to providers established in the EU has become indispensable due to the upcoming modification, on 1 January 2015, of the rules they are currently subject to. Indeed, from said date, telecoms, radio and TV broadcasting services, as well as services provided electronically in the EU by service providers to clients that are not liable to this tax, will become taxable in the member state that is receiving the service.

Thanks to the one stop shop system, cross-border service...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT