The ecommerce market has grown at a phenomenal rate in the past decade, one the reasons why governments now want a slice of the action.
The new EU VAT rules come into effect on January 1, 2015 - that date is set in stone.
In 2015 there will be new B2C 2015 EU VAT rules: governing the taxation of digital services.
Taxamo is an Irish-based technology company that was inaugurated to help eMerchants comply with the new EU VAT rules on B2C cross-border sales of digital goods.
2015 The main aim of the EU's 2015 VAT changes is to make ecommerce less complicated. Time will tellif this will actuall happen.
Affected businesses will have to adapt so as to meet the internal demands and external requirements of the VAT legislation reform.
London - The 2015 VAT changes in the EU will have a major impact on e-merchants and the e-commerce sector as a whole.
Digital goods are software programs, music, videos or other electronic files that users download exclusively from the Internet.
A new VAT Directive - adopted by all 28 EU member states in October 2013 - will be introduced in January 2015.
The new rules cover services that are automatically supplied via the internet. Essentially any service that can needs the internet to function.
AS the deadline for the introduction of the EU’s new VAT on eServices nears it is about time businesses realise whether or not they are actually affected.
MOSS has been created to make it easier for eMerchants to register and declare EU VAT in the EU Member State where they are located.
The European Commission believes that the effect of the 2015 VAT changes on consumers will be minimal.
The reasons for not paying VAT in the EU varied from ignorance of rules to poor book-keeping and from non-compliance to fraud.
Affected merchants will need to establish what type of sales they have in the EU so as to differentiate. Remember, B2B sales will not incur any VAT while B2C will come under the scope of the new VAT changes.
The EU VAT digital services reform kicks in at the start of 2015 and yet there is still a lack of knowledge as to who will be affected and how.
The rule change due to be implemented on January 1, 2015, relates to digital service merchants with B2C sales in the EU. It only affects B2C sales from EU and non-EU merchants.
In October 2013 the EU taxation commissioner Algirdas Šemeta made it clear that the reason for the new VAT rules were to improve EU VAT compliance.
