VAT, delivery, geo-blocking… Brussels advance on these three major projects.
A dealer in europe on two finds it difficult to sell its products in other countries of the Union. Because, in order, the regulations still too disparate in the protection of the consumer (and their privacy), the rate of VAT so… creative that they become unmanageable, and the logistics infrastructure atomized.
After the RGPD, and prior to the hypothetical tax of 50 cents per mile on deliveries that made squeak the teeth of the e-tailers, Europe has decided to tackle these problems. Review detail.
Stroke of the sickle, in the maquis of the VAT
there’s “only” 10 points gap between the champion of the european VAT (Hungary, with a rate of 27%) and Luxembourg and 17% of the levy. But an e-merchant that would like to deliver in the 28 countries of the european Union needs to seriously heat up the calculator : depending on the configurations, these are… 75 rates of VAT to different can apply !
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which is Unacceptable to Brussels, who has decided to clarify the rules from the 1st January 2021. The image of this practice already in e-services (telecoms, software, cloud…), e-merchants will be able to enjoy the MOSS (Mini One-Stop Shop, or mini one-stop shop). Clear, declare their VAT in a single member State for all of their sales in Europe. The tax chosen will then pay back the sums owed to the other States.
To clarify things even further, this will be the invoicing rules of the country of the supplier will apply : no more need to comply with the obligations of the other 27 member countries.
Operation truth on the price of the delivery
a Better framework for logistics services (and reducing their price), is the objective of the new regulation on the delivery of cross-border parcels, which was adopted in march 2018 by the european Parliament, and which should enter into force in early 2019.
By what means ? First will be an “operation truth” on the tariffs charged by the providers of the delivery. Everyone will have to communicate the prices of delivery services are used most frequently. Price that the Commission will publish on a dedicated website.
Then loading the national regulators to ensure the grain. Identify the logistics providers and the services they offer, to assess whether shipments to or from overseas seem abnormally expensive… In France, this will be the Arcep, which will play the referee.
the Last pane of the regulation : the obligation for merchants to display clear information on the delivery rates for cross-border as they do for domestic shipments. Objective, put an end to what the Commission believes to be an abuse : of delivery cross-border which can be five times more expensive than domestic items.
geographic Restrictions: the (almost) end of the block
Cause or consequence of this simplification, Brussels, to open wide the frontiers of the e-intra-community trade. Because Europe is still very far from being a single market in the field : for not having to deal with the headache of rules and local taxes, the Internet sites still practice large-scale geo-blocking.
Translation ? According to a study conducted by the commission in may 2016, 63% of sites refuse certain services on the basis of the location of the user. Either by blocking outright access to their site (5% of cases), either by refusing the payment (22%) or delivery (27%).
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E-commerce cross-border, adapt to the difference
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Early in February 2018, the Parliament has made illegal these practices from the end of the year. Albeit with some exceptions : the audiovisual content protected by copyright, the transport services are not affected. And the members of the european parliament are not gone so far as to require an e-merchant to ensure the delivery of its products, or to align its prices in the European Union. The e-single market is not yet for tomorrow…