UK response to EC VAT digital single market proposals

In a letter to European Commissioner for economic and financial affairs, taxation and customs Pierre Moscovici, HM Treasury set out the UK government’s response to the EC’s recently closed consultation, Modernising VAT for cross-border e-commerce. The government welcomed the EC’s digital single market strategy. It stressed, however, the need for simplification measures to help SMEs, as well as start-up e-commerce businesses, deal with the administrative burdens associated with cross-border VAT. The government's response also confirmed that the EC intends to publish an action plan on the definitive VAT regime in March 2016, together with a green paper on reforming the rules on member states VAT rate setting. See www.bit.ly/1P4gnI6.