New EU rules for exchange of VAT payment data in e-com
12 Nov 19 2 min read
The European Council recently agreed on a set of rules to facilitate detection of tax fraud in cross-border e-commerce transactions. The new rules will enable member states to collect e-records of payment service providers like banks. A central system will also be set up for storing the payment information and its processing by national anti-fraud officials.
This set of new rules consists of two legislative texts: First, amendments to the value-added tax (VAT) directive putting in place requirements on payment service providers to keep records of cross-border payments related to e-commerce. This data will then be made available to national tax authorities under strict conditions, including those related to data protection.
Second are amendments to a regulation on administrative cooperation in the area of VAT. These amendments set out the details of how national tax authorities will cooperate in this area to detect VAT fraud and control compliance with VAT obligations, according to a press release from the European Union (EU).
These rules complements the VAT regulatory framework for e-commerce coming into force in January 2021 that introduced new VAT obligations for online marketplaces and simplified VAT compliance rules for online businesses.
These rules should be formally adopted by the European Council without further discussion once the text undergoes a legal and linguistic review.
Disclaimer - All News/Articles items are subject to copyright and no article either in full or part may be reproduced in any form without permission from Fibre2Fashion Pvt. Ltd.
This set of new rules consists of two legislative texts: First, amendments to the value-added tax (VAT) directive putting in place requirements on payment service providers to keep records of cross-border payments related to e-commerce. This data will then be made available to national tax authorities under strict conditions, including those related to data protection.
Second are amendments to a regulation on administrative cooperation in the area of VAT. These amendments set out the details of how national tax authorities will cooperate in this area to detect VAT fraud and control compliance with VAT obligations, according to a press release from the European Union (EU).
These rules complements the VAT regulatory framework for e-commerce coming into force in January 2021 that introduced new VAT obligations for online marketplaces and simplified VAT compliance rules for online businesses.
These rules should be formally adopted by the European Council without further discussion once the text undergoes a legal and linguistic review.
Fibre2Fashion News Desk (DS)
Popular News
|
North India cotton yarn struggles amid weak demand, optimism persists |
|
US import prices up 0.9% in Apr 2024; export prices up 0.5% |
|
South Indian cotton yarn stable; sentiments weak amid cash crunch |
|
US textiles & clothing imports surge by volume in Jan-Mar 2024 |
|
US’ small business optimism index rises in April 2024: NFIB |
|
Chinese cotton may stay weak, but short-term rebound possible |