The VAT ‘e-commerce package’ (new one-stop shop for distance
sales of goods between EU member states) is to be delayed to 1 July 2021 (from 1
January 2021 as originally proposed). The abolition of low-value consignment
relief will also be pushed back. The new DAC 6 reporting requirement on
cross-border tax schemes had been due to take effect on 1 July 2020, but the
Commission proposes to delay this to 31 January 2021.
These developments are highlighted by the House of Commons European
Scrutiny Committee in its Eleventh
Report of Session which also notes Commission approval of the SEISS
under the EU state aid temporary framework.
The report notes that ‘the key consequences of the delayed
application dates are, first, that the UK will have more time to apply the new
VAT rules for goods bought online in Northern Ireland, and secondly that – by
pushing the relevant deadline beyond the end of the post-Brexit transition
period – it will effectively lift the requirement on the Government to exchange
information with its counterparts in the EU on information filed by British tax
advisors on cross-border tax arrangements.’
Under DAC 6, intermediaries (including tax advisers) are
required to report certain cross-border tax planning arrangements to their
national authorities, that information then being shared under the Directive.
The VAT ‘e-commerce package’ (new one-stop shop for distance
sales of goods between EU member states) is to be delayed to 1 July 2021 (from 1
January 2021 as originally proposed). The abolition of low-value consignment
relief will also be pushed back. The new DAC 6 reporting requirement on
cross-border tax schemes had been due to take effect on 1 July 2020, but the
Commission proposes to delay this to 31 January 2021.
These developments are highlighted by the House of Commons European
Scrutiny Committee in its Eleventh
Report of Session which also notes Commission approval of the SEISS
under the EU state aid temporary framework.
The report notes that ‘the key consequences of the delayed
application dates are, first, that the UK will have more time to apply the new
VAT rules for goods bought online in Northern Ireland, and secondly that – by
pushing the relevant deadline beyond the end of the post-Brexit transition
period – it will effectively lift the requirement on the Government to exchange
information with its counterparts in the EU on information filed by British tax
advisors on cross-border tax arrangements.’
Under DAC 6, intermediaries (including tax advisers) are
required to report certain cross-border tax planning arrangements to their
national authorities, that information then being shared under the Directive.
