On 25 September 2015, the European Commission launched a public consultation on modernizing value added tax (VAT) for cross-border e-commerce in the EU. The consultation is part of the Commission's plans to create a Digital Single Market for the EU, and includes an assessment of the 1 January 2015 change in the place of supply rules for B2C supplies of telecommunications, broadcasting and e-services, and the associated Mini One-Stop Shop (MOSS).

Measures the Commission is currently considering include:

• Extending the current single electronic registration and payment mechanism to cover the sale of tangible goods;
• Introducing a VAT threshold to help online start-ups and small businesses;
• Allowing cross-border businesses to be audited only by their home country for VAT purposes; and
• Removing the VAT exemption for the import of small consignments from suppliers in third countries.

Click the following links for the European Commission press release and the Public Consultation.

The consultation will run until 18 December 2015.