EU tax advisors propose €125,000 VAT MOSS threshold

The Confederation Fiscale Europeenne (CFE), the association of European tax advisors, has recommended a Mini One-Stop-Shop (MOSS) VAT registration threshold of €125,000 per annum.

Modernising VAT for cross-border e-commerce

The call was made as part of the CFE’s submission to the European Commission on the Modernising VAT for cross-border e-commerce. Other points made by the CFE included:

• The digital services MOSS reporting regime should be extended from digital goods to physical goods
• Retention of the Low Value Consignment Relief, which grants the VAT and duty free importation of low value goods into the EU
• The right for companies to only have to comply with the invoice rules of their home country on cross border sales
• The introduction of a single EU audit from a seller’s home country tax authorities
• The introduction of a cross-border dispute resolution mechanism to avoid businesses potentially suffering double taxation
• Dropping the country-by-country distance selling threshold for a single pan-EU threshold, supported by the MOSS reporting regime
• Granting the right to non-VAT registered businesses to recover input VAT