The European Parliament reviews the initiative on controlling credit card companies
The European Union is exploring new measures to tackle VAT fraud in the online selling industry
15 January, 2020
In order to fight VAT fraud the EU is collaborating with credit card companies to retrieve the information on online purchases made by customers in each country.
Last 6 December 2019 the European Parliament gave its support on this initiative and published a report on the proposal for a Council directive requiring credit and debit card companies to provide information about online purchases.
More than 90% of online purchases are made through credit and debit card payments. Under the planned initiative, credit card businesses would be required to exchange this information with tax authorities, including the amounts and details of the seller to whom the payment was made.
Denmark already implemented this scheme and made it effective since July 2019.
Alternatives to this mechanism are those already in place in Italy, France and Germany, where online selling platforms like Amazon, Ebay or Alibaba are required to provide information about the sales of each seller using their services. However, the European Commission recently challenged the German initiative on controlling online selling platforms, so the alternative of capturing this data from credit card companies has gained renewed importance.
How can we help you?
Marosa has a dedicated team for VAT compliance of online sellers in Europe. We have technology and experience that applies specifically to the Amazon transactions report and other native files issued by online selling platforms. Contact us to understand how we can help your business expanding your activity in Europe.