The increasing importance of e-commerce has been brought home to the last few months even to the last doubters.

However, as the EU Commission itself explained on 15.07.2020 - more on this in a blog post shortly - the area Value Added Taxof compliance represents a considerable hurdle for many small and large innovative companies in this segment.

We have discussed two specific hurdles in detail in the current issues of the following tax journals.

  • beck.digitax - The One-Stop-Shop (OSS): Is it coming? If so, when? What does it bring? ...
  • IWW BBP - Tax offices are discovering online trading: What are the main focuses of the audit? Where are the weak points on the part of the traders?

beck.digitax: One-Stop-Shop

Completion of the Digital Single Market by 1.1(7.) 2021?

IWW: Tax audits in online trade

New focus of the tax audit

Conclusion

Both articles clarify: VAT law is lagging behind the technological developments in e-commerce.

  • The EU Commission would relieve the OSS and the associated turnover tax law of considerably more legacy burdens than the member states allow it to do. This is likely to remain so in the coming years, so that we can continue to wait for the big reform bill.
  • An increasing number of tax offices are carrying out tax audits or Value Added Taxspecial audits of online business - the result will not always look like the following graphic, as it is not uncommon for both sides (tax offices and online merchants) to lack a basic understanding of each other.
Result of our own Value Added Taxspecial audit

The compliance platform for the digital economy

... and provides the leading online retailers in Europe with the handling of the current Value Added Tax-Compliance, Intrastat and financial accounting (Taxdoo is a partner of DATEV) also offers numerous other compliance services via a unique platform.

If you want to know more about how you Value Added Taxcan efficiently and securely map compliance, financial accounting and much more via a platform, then book your individual and free initial consultation with the compliance experts from Taxdoo!

You are also welcome to register for our regular demo webinar in which we will introduce Taxdoo and our compliance services and answer your questions personally.

P.S.: Taxdoo has been an official partner of DATEV in online trading since the beginning of 2020.