- Insights
Monthly News - July 2024
It’s the start of a new month, and there’s always something new in the tax and compliance sectors.
So, what’s changed recently?
EU fails to reach agreement on VIDA proposals
The European Union Economic and Financial Affairs Council (ECOFIN) met on the 21st June 2024 to discuss the implementation of the EU’s proposed ‘VAT in the Digital Age’ (VIDA) proposals.
All 27 Member States agreed on 2 out of the 3 proposals (single VAT registration scheme, new invoicing and reporting rules).
However, Estonia, one of the 27 Member States, has vetoed the expansion of marketplace facilitation (‘deemed supplier’) rules which would require more platforms such as those providing accommodation and transport services to collect VAT on behalf of their sellers.
Estonia has continually argued that this measure would undermine neutrality and could adversely affect smaller businesses that trade under the domestic VAT registration threshold.
A compromise proposal to exempt SME businesses from the expanded marketplace facilitation rules was rejected by Estonia.
Negotiations will continue in July.
Amazon announces closure of Call Off Stock programme
Amazon has announced that its Call Off Stock (COS) programme will be discontinued on the 1st August 2024.
COS was a programme which allowed Amazon sellers to bypass some VAT registration requirements when importing inventory into new regional markets. This allowed sellers to try selling via Amazon FBA in new regions without first having to apply for VAT. The programme ran in France, Germany, Italy and Spain.
Following Amazon’s decision to close the COS programme, sellers who wish to continue selling in those markets will need to apply for VAT and join Amazon’s Pan-EU programme. Sellers who do not do this will have their inventory automatically returned to the country of origin.
New security requirements for sellers of smart devices and electronics in the UK
Regulations introduced by the Product Security and Telecommunications Infrastructure (PSTI) Act 2022 entered into force on the 29th April 2024.
Under the new requirements, sellers of ‘consumer connectible’ devices such as smartphones, computers and ‘smart’ home appliances have an obligation to set stronger default passwords on their products, provide a reporting mechanism for customers to report safety issues, and outline their planned software update lifecycle.
Find out more here.
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