14 Dec 2018
The European Commission has put together a proposal aimed at tackling tax fraud, which entails improved co-operation between tax authorities and credit cards firms, as well as other e-money companies.
The proposed rules establish quarterly information-sharing obligations for providers, which will allow member state anti-fraud specialists (the ‘Eurofisc’ network) to exchange and analyse certain payment data received from the providers on cross-border sales.
In turn, both EU and non-EU online sellers ‘will be identifiable when they do not comply with VAT obligations,’ an EU statement said.
More than 90% of European customers’ online purchases involve a payment intermediary such as credit card and direct debit providers, according to the EU, and “data held by these companies can offer EU tax administrations a useful tool to control the VAT obligations on cross-border sales of goods and services.”
The measures will now be submitted to Member States in the Council for agreement and to the European Parliament for consultation.
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