Pierre Moscovici, European Commissioner for Economic and Financial Affairs, Taxation and Customs, today hailed the new VAT rules for cross-border e-services that will enter into force on January 1, 2015. The new rules, which were voted unanimously by Member States in 2008, aim to create fairer competition between any companies selling e-services, whether big or small.
"So far, a lot of VAT revenues on on-line cross-border purchases have gone to low-tax member states where large e-firms are based. As of January, new rules will correct this distortion and ensure fair distribution of tax revenues in Europe, as well as creating a level playing field between businesses. Many of Member States will therefore see their VAT revenues rise," said Moscovici. To help businesses easily adapt to the new rules, a mini One Stop Shop (MOSS) has been created. It is a single contact point that enables small businesses selling digital services to private consumers in another member state to declare and pay all their VAT revenue in their home country, instead of having to deal with 28 tax regimes.
1