Tag Archives: ebusiness

Latest EU proposals concerning e-commerce

The e-Commerce VAT package of the EU introduces simplification measures for intra-EU sales of electronic services from 2019 onwards, and also extends by 2021 the Mini One-Stop Shop to a One Stop Shop. Furthermore, new rules for electronic interfaces such as marketplaces or platforms will be introduced, which deem them for VAT purposes (in certain scenarios) to be the supplier of goods sold to customers in the EU and make them collect and pay the VAT on these sales.

Detailed implementation rules have been published în December on:

  • the extension of the scope of the Mini One Stop Shop (MOSS) to all types of services as well as to intra-community distance sales of goods and distance sales of imported goods from third countries – turning the MOSS into a One Stop Shop; and
  • the introduction of special provisions applicable to operators of electronic marketplaces, platform, portal or similar means with the effect that the these persons may be deemed to have received and supplied the goods itself applying from 1 January 2021.

The Proposal is available via this LINK and contains more detailed explanations of the following specific provisions.

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South Africa – Revised e-business regulations will become effective from April 2019

Changes are expected from April 2019 concerning the taxation of electronic services in South Africa. All non-resident suppliers of e-services (if not specifically excluded from the revised regulations) will have a potential VAT registration liability in South Africa if the total value of their supplies exceeds R1 million (approx. 70’000 USD) in any twelve-month period.

For further details, please see the tax alert from PwC South Africa:

https://www.pwc.co.za/en/assets/pdf/taxalert/tax-alert-vat-treatment-of-supply-of-electronic-services.pdf

 

Canada: Public Consultation on taxation of digital imports

Canada joins those countries that make efforts to tax supplies provided by non-established businesses via the Internet to Canadian residents. As recently reported in PwC’s GlobalVATOnline the Canadian government launched a public consultation as part of a 2014 Budget proposal to ensure tax fairness and invites the public to give their opinion on what actions should be taken in order to effectively collect sales taxes on e-commerce sales to residents of Canada by foreign-based vendors.

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New B2C 2015 EU VAT rules for eservices

In 2015 all European countries will charge VAT on all eservices provided to their residents no matter where the eservice provider will be located (i.e. in Europe, America, Asia or elsewhere). This will be the result of the new B2C VAT rules and the technology which will enable to enforce these new rules. The VAT taxation will lead to increased sales prices of digital products (by as much as 27%) and/or decreased the profit margin for the e-businesses. In addition compliance and admin costs will increase as a result of increased tax compliance and reporting procedures. All this will directly impact the profit line. Alternative is even worse – e-businesses not willing to register and charge VAT will be shut out of the European market.
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