Simplifying and Modernising VAT in the Digital Single Market for e-Commerce

18-09-2012

E-commerce is a large and growing business and a key part in the digital economy. To reap the full potential, a number of barriers needs to addressed, not the least the obstacles that the current VAT system presents to cross-border sales of physical and in particular digital content e-commerce products. This report lists shortcomings in the present VAT set-up, evaluates policy options put on the table by inter alia the European Commission and provides a range of recommended policy options that should be reviewed in more detail.

E-commerce is a large and growing business and a key part in the digital economy. To reap the full potential, a number of barriers needs to addressed, not the least the obstacles that the current VAT system presents to cross-border sales of physical and in particular digital content e-commerce products. This report lists shortcomings in the present VAT set-up, evaluates policy options put on the table by inter alia the European Commission and provides a range of recommended policy options that should be reviewed in more detail.

Údar seachtarach

Helge Sigurd Næss-Schmidt, Daniel Mekonnen Ali, and Miguel Nieto Arias , with technical support provided by Johan Van der Paal, Joanna Denton and Manager Kenneth Vyncke (Deloitte Staff Partner)