How the US & EU are closing e-commerce tax loopholes
Legislators are acting to close e-commerce VAT and sales tax loopholes across the world.
EU Member States have agreed to make online marketplaces responsible for collecting VAT from 2021 for their non-EU sellers in a bid to recover €5bn in VAT fraud. But countries have already acted unilaterally, including the UK, German, Italy and Austria.
In the US states are forcing online marketplaces to report and collect sales taxes due by third-party sellers on their platforms. This is following the 2018 South Dakota vs Wayfair ruling on economic nexus, permitting states to extend the tax net to out-of-state retailers.
Join Richard Asquith and Jake Estes as they discuss why the EU and US are imposing new VAT and Sales Tax rules as well as covering:
- The EU countries already requiring marketplaces to check VAT compliance
- Why the EU has imposed lost-VAT liabilities on marketplaces from 2021
- Why some of the US states that are introducing out-of-state taxing
- The US states that require marketplaces to collect from Sellers
Jake Estes is a EMEA Solutions Engineer, for Avalara, the global leader in sales tax and VAT automation. For five years Jake has helped businesses utilise Avalara’s solutions to manage their US and global indirect tax compliance. Jake holds degrees from Washington State University (BA) and the University of Buckingham (MBA).
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.