Proposed new rules for cross-border payment of the EU value-added...

Proposed new rules for cross-border payment of the EU value-added tax (VAT) emerged from the European Commission Friday. In December, the EC said it will apply a one-stop shop approach for VAT compliance across borders first to e-commerce, broadcasting and telecom services, beginning Jan. 1, 2015. Its new proposals (http://xrl.us/bmomza) cover aspects of the system such as scope, reporting obligations and records. The one-stop shop will let providers of such services declare and pay the tax in the EU member nation where they're established rather than where a particular customer resides, the EC said. The regime is currently limited to non-EU electronic services providers but is being extended to EU businesses and to broadcasting and telecom services, it said. The EC urged governments to agree to the proposal this year, saying a common approach is key to designing the information technology systems needed to exchange information among the 27 tax authorities by 2015.