EU: Proposed tax rules for online transactions
The European Commission is currently working on a proposal for effective taxation over online transactions; the proposal is expected by 2018 for further approval and consideration of the European Parliament and Council.
The President of the European Commission, Mr. Jan-Claude Juncker said “Tax has to be paid where it is due, be it offline or online” after the EU Digital Summit in Tallin, Estonia.
This new tax rules have emerged due to several critics to online firms that avoid paying taxes through profits routing schemes. However, not all EU countries are on the same page on this issue and this could delay any affirmative action in the foreseeable future where no consensus is achieved in 2018.
The new tax rules along with the Anti-Tax Avoidance Package – expected to be effective as from January 1st, 2019 – are significant regulations over tax planning and should be studied with care and diligence.
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