Eu Vat E-Commerce Package Assignment Sample

Discover the EU Commission's strategies for digital transformation, including IOSS updates, financial thresholds, record-keeping harmonization, and VAT exemptions.

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Introduction Of The EU VAT E-Commerce Package Assignment

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The EU’s VAT eCommerce package measures the implemented stages which is simplify cross-border sales of the business. Digital handling is important for individual customers and that develops a more accurate customer handling process in the business. This package is included by the government of the country to fulfil some additional requirements for both, customers and business organizations. The goods are getting low value when they are consignment and collection of VAT involves intra-EU business which is more important for B2C transactions. The scope of the study is to improve some strategies of both certain electrically supplied through the B2C EU.

Main Body

Benefits of EU VAT e-commerce and more integrated flow of VAT system in Europe

Reduce administrative burdens

Both systems are useful to reduce some administrative boundaries in the business and the collection of VAT is implemented in the EU’s eCommerce package. After that, the EU’s VAT package comes into B2B business to reduce financial burdens in the business. On the other hand, it sometimes directly impacts the B2C business for both stakeholders and clients. Involves some positive outcomes in the business reducing administrative burdens is a useful thing that minimizes or addressed numerous issues in the business. As per the opinion of Zhelyazkova (2020), technical skills and knowledge are also important for the business which is effectively identifying how to maximize more opportunities for B2C transactions. Sometimes the business is falling due to some boundaries which negatively impact the business growth of the organization. Apart from that, includes some innovative changes in the business VAT e-commerce package include some benefits in a financial transaction which is useful for outside sellers of the country.

In order to, improves the future scope individual suppliers are trying to identify how to maximize the business benefits and the common process is important to address the common issues. As cited by Blegen (2020), individual suppliers are making healthy communication with the clients which is important for minimizing the sales burden on the business. The EU eCommerce package is following the government which facilitates the collection of VAT during the same time. In addition, this process is important for third-party involvement in business who does not pay tax to the government. A business is not established IOSS (Import One Stop Shop) which is represented in a fiscal year by the company. In order to, improve the online marketplace and imports of goods EU VAT package is important for outside sellers of the country.

Introduce changes in the business

EU VAT e-commerce process includes some positive changes in the business which is important to achieve profitable goals by increasing sales. Although the business process is not easy and government can involve VAT e-commerce packages which are also beneficial for the external business sellers of the country. Most business organizations are trying to identify how to maximize business sales and government can include a VAT e-commerce process that minimizes the major boundaries of B2C or B2B customers along with the business (Martynkiewicz-Frank, 2018). In addition, sometimes individual business organizations are needed some possible changes to minimize uncertain boundaries which is important for the business and customers. Government can include new rules by the VAT eCommerce package which is effective for the outside sellers of the country.

More integrated flow of integrated VAT system in Europe

EU VAT e-commerce was introduced by the government which replaces the transformational VAT system which is applied to individual investors. As per the opinion of Juanpere (2019), the economic effect is included in the business due to the traditional system and the government wants to reduce the common boundaries and includes some new rule which is useful for individual sellers. In order to, includes some mutual changes in the business most of the customers and business are trying to involve government to reduce third-party involvement in the business. The VAT e-commerce package allows continuous monitoring of financial activities and any major loopholes that result from activities related to VAT e-commerce, thus reducing the probability of fraud and financial mishaps.

According to the interpretation, the mixed system has been included by the government which is also important to minimize the major boundaries in business. Apart from that changing a single VAT area in the business's traditional methods is important which also minimizes the economic challenges in the business. As a result of the EU's eCommerce package, VAT is collected in both of these systems, which is useful for reducing some administrative boundaries in businesses. The government of the country is applying new rules which are important for the business and making some new or innovative changes in the business (Yu, 2018). Accordance to the commission replacement proposal transactional VAT is also important and that can make some possible changes in the business.

On the other hand, the proposed system also affects the cash flow cost for the individual buyers and the capital is important to facilitate the business market. As per the opinion of Nykiel-Mateo, (2020), reducing the prohibited obstacles is important and can identify how to maximise opportunity along with the future scope which is more useful for the outside sellers of the country. At the same time, individual European institutes are trying to identify how to maximise the business benefits by improving the sales volume of the business. Since consignment goods have low value, and VAT collection involves intra-EU business, which is more important for B2C transactions, goods get low value when they are consigned.

Ongoing work by the EU commission in the digital age

The ongoing work by the EU commission in the digital age is considered to be an important aspect in order to establish detailed qualitative characteristics of the EU Vat E-commerce package. The prospective role of the European Union is further considered to be important as the focus on simplifying the Value Added Tax procedures can aid member nations as well as the generic European economy. The ongoing work conducted by the EU to harmonise the VAT system can be structurally segregated by the following important strategies.

Transforming Businesses

The primary strategy implemented by the EU commission for empowering usage of the digital age can be considered concerning facilitating favourable transforming business prospects. Van Gool and Terryn, (2021), expressed and idealised that the digital age in the current global regime is a significant parameter needed to be considered by EU nations to establish detailed harmony in conducting regular business operations and activities in a streamlined manner. Digital empowerment can further aid businesses to establish a strong integration and connect with customers, suppliers and other relevant stakeholders to ensure future business sustainability.

Meeting Destined Goals and Objectives

The second important strategy incorporated to ensure the ongoing work conducted by EU to facilitate higher usage of digital prowess in the context of European nations development is considered to be closely related to meeting destined future goals and objectives. The meeting of goals and objectives is mostly associated with keeping a target of “climate neutral" Europe by 2050. Additionally, the ongoing work for digital empowerment is expected to be fast-tracked to determine Europe's "digital decade”.

Tackling Potential Frauds and Financial Mishaps

The third important strategy is considered an integral part of the digital transformation process by the EU and can be related to tackling potential frauds and financial mishaps. As opined and idealised by Hou (2021), tackling potential frauds and financial mishaps can be made easy as digital tools allow constant tracking of financial activities and any major loopholes arising from activities related to the VAT e-commerce package.

Reduction of administrative liabilities for relevant tax authorities

In addition to the potential tackling of frauds and financial mishaps, the reduction of administrative liabilities for relevant tax authorities is considered to be an important strategy on part of the EU to enable a healthy digital age transformation. Administrative liabilities can be reduced by enabling a streamlined activity course in the determination of VAT eCommerce packages, which thereby leads to minimisation of human errors.

Enabling swift reduction in the cost of tax liabilities payable for companies.

In addition to a reduction in the administrative liabilities for relevant tax authorities, the reduction in cost of tax liabilities payable for companies is also considered to be energised to uplift the digital age in Europe. As opined by Tu and Shangguan (2018), viewed and narrated that swift reduction in cost of tax liabilities shall enable companies to conduct more business activities. Hence, it will be beneficial to enable a healthy circular flow of financial resources in the economy driven by usage and implementation of digital technology.

The latest updates on IOSS that addressed VAT eCommerce changes

The latest updates on IOSS or Import One-Stop Shop that have addressed the VAT e-commerce changes can be fundamentally considered as taking a progressive step to achieve higher credentials in the field of business relations. Pappas (2020), expressed and idealised that IOSS further helps business organisations to facilitate quick and prompt business processes to enable swift and hassle-free movement of goods and services. Moreover, the import and export processes of VAT e-commerce packages can be facilitated at lower consignment values in order to enable both the supplier and the customer to a large chunk of profit-seeking prospects. Following updates have been witnessed with regards to the implementation of IOSS implementations leading to changes in VAT e-commerce paradigms.

Networking of Online Sellers

The primary change occurring in the IOSS updates can be considered concerning identifying the networking prospects of online sellers. The networking of online sellers is considered to grow at a staggering rate owing to the EU welcoming bilateral trading activities between two or more countries. Moreover, online sellers have been further encouraged to ensure hassle-free registration processes where declaration to offer services and monetary considerations are being simplified. The expected activities in sales and purchases between suppliers and customers situated in cross-border countries are expected to increase gradually in the near and foreseeable future, where a 95% red-tape reduction is forecasted.

Establishment of Financial Threshold

The second major update occurring in the IOSS update can be ascertained with the establishment of a financial threshold. Wiktor, et al. (2021), explained and observed that a minimum of EUR 10,000 has been considered as the threshold limit, where a VAT e-commerce package is charged above this threshold. Subsequently, traded business transactions below the threshold limit are considered to be subject to VAT taxation when the nature of goods and services offered are taken into consideration. Hence, the VAT rate for manufacturing goods transactions can vary with the VAT applicable for services, considering the financial soundness and reliability of the individuals responsible or part of the entire transaction process.

Harmonising Record Keeping Requirements

The third important update on the IOSS addressing VAT e-commerce package changes can be associated with harmonising the record-keeping requirements. Record keeping requirements are considered to be an essential aspect of business detailing for companies and entities to safeguard financial and non-financial controlling interests. Hence, IOSS provides a collaborative and interactive marketplace platform where healthy interaction between suppliers and customers is facilitated to enable healthy business conduct and activity streams in European commercial circles (Ma et al. 2018)

Exemptions and deductions applicable for VAT

The fourth important consideration and update applicable for the IOSS to facilitate VAT e-commerce changes can be associated with applicable exemptions and deductions for VAT. Usman (2019), expressed and narrated that in order to propel exemptions in the VAT for e-commerce packages the overall VAT value of EUR 22 is being removed and expelled. Hence, it can be considered that all the values of goods exported and imported need to be considered under the purview of VAT.


Based on the above discussion it can be concluded that enhancing digital use is the EU commission's primary strategy to facilitate favourable transforming business opportunities. EU As a result of VAT e-commerce, some positive changes take place in the business, increasing sales and resulting in more profitability. This will enable the VAT reform to effectively convey the main features of the new VAT system in clear and practical terms, as well as the benefits European businesses will ultimately reap from the reform. In order to avoid unnecessary disruptions, delays and administrative burdens due to uncertainty in the CTP application process, the Member States need to process CTP applications promptly.


Van Gool, E. and Terryn, E., 2021. The role of European consumer contract law in shaping the environmental impact of e-commerce. Journal of European Consumer and Market Law, 2021(3), pp.89-101.

Hou, Y., 2021, December. Capacity of Global Cross-border E-commerce: New Opportunities and Threats in 2021. In 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) (pp. 123-127). Atlantis Press.

Tu, Y. and Shangguan, J.Z., 2018. Cross-border E-commerce: A new driver of global trade. In Emerging issues in global marketing (pp. 93-117). Springer, Cham.

Usman, A., 2019. An emprical assessment of the impact of E-commerce on value-added tax revenue generation in Nigeria. International Journal of Humanities and Social Science, 24(4), pp.6-17.

Pappas, C.W., 2020. Comparative US & (and) EU Approaches to E-Commerce Regulation: Jurisdiction, Electronic Contracts, Electronic Signatures and Taxation. Denver Journal of International Law & Policy, 31(2), p.8.

Wiktor, J.W., ?a?o, J. and Šimberová, I., 2021. The Digital Transformation of the EU Market the Digital Single Market Strategy in the Context of E-Commerce Development Diversification in Czechia, Poland and Slovakia. Problem Zarz?dzania, (1/2021 (91)), pp.11-28.

Ma, S., Chai, Y. and Zhang, H., 2018. Rise of Cross?border E?commerce Exports in China. China & World Economy, 26(3), pp.63-87.

Zhelyazkova, V., 2020, June. E-Commerce and Distance Selling in the European Union. In International conference KNOWLEDGE-BASED ORGANIZATION (Vol. 26, No. 2, pp. 262-267).

Blegen, B.C., 2020. Re-examining border clearance in the age of e-commerce. World Customs Journal, 14(2), pp.81-98.

Martynkiewicz-Frank, M., 2018. E-commerce challenge within B2C transactions inside EU countries. Prace Naukowe Uniwersytetu Ekonomicznego we Wroc?awiu, (515), pp.157-165.

Juanpere, B.A., 2019. Action Plan on VAT: Creating a Single VAT Area in the EU. Eurasian Journal of Economics and Finance, 7(1), pp.1-14.

Nykiel-Mateo, A., 2020. Review of the rules on the special scheme for small enterprises under the VAT Directive 2006/112/EC. Kwartalnik Prawa Podatkowego, (2), pp.35-47.

Yu, T., 2018. A case study of B2C cross-border e-commerce challenges in China from Customs to consumers. World Customs Journal, 12(2), pp.121-132.


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