Online VAT on sales is simplified

 On Friday, 5 December, EU finance ministers agreed on the reform of VAT on e-commerce. The reform simplifies the payment of VAT to different EU countries.

The special system for electronic services is expanding to the sale of other services as well as to the online shopping of goods within and outside the EU. In the future, sellers can pay centralized VAT to all EU countries through one electronic system. The import duty on small consignments is eliminated as it discriminates against EU operators. The amendments will come into effect at the beginning of 2021.

The purpose of the reform is to reduce the administrative costs of companies, to improve the competitiveness of EU companies and to ensure effective taxation of e-commerce.

The finance ministers of the EU countries discussed this issue at the Economic and Financial Affairs Council on Tuesday, 5 December. Finland was represented in Brussels by Finance Minister Petteri Orpo.

Bulletin of the EU Council (English) 
The Government supports the simplification of VAT on cross-border e-commerce (news 12.1.).

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