Commentary

V2.178 The future of distance sales

Part V2 Registration – deregistration

V2.178 The future of distance sales

V2.178 The future of distance sales

Paragraph V2.189E provides an overview of the arrangements in place for accounting for intra-Community B2C supplies of electronic services, and in particular the schemes under which the necessity for the supplier to register in each member state in which he makes supplies is avoided. No such schemes exist for intra-Community B2C sales of goods (ie distance selling), with the result that distance sellers are (subject to the turnover limit of £70,000 in the UK, and its equivalent1 in other member states) required to register in each member state in which distance sales are made. However, a Report of the Commission Expert Group on Taxation of the Digital Economy dated 28 May 20142 on the digital economy by the EC Expert Group stated:

'The Group recommends that a broader OSS [One Stop Shop] should be pursued as a priority for all EU B2C supplies of goods and services. The current requirement for suppliers (above applicable thresholds) to register and account in each Member State to which they makes B2C supplies of goods is a clear obstacle to cross border trade. Furthermore, the Group considers that a broader OSS is a critical instrument to facilitate access to the Single Market. In this respect, with such an extended OSS in place, it recommends that the existing thresholds in respect of distance sales should be removed i.e. all remote supplies of goods should be taxed at the place of supply of the consumer, with a single return and payment

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