European Parliament approves VAT reform: what does it mean for businesses?

The European Parliament has approved a sweeping VAT reform that will have a major impact on e-commerce platforms and cross-border trade within the EU. The new rules, effective from 2030, will make online platforms co-responsible for VAT payments and digitize VAT reporting. Platforms responsible for VAT payment Starting in 2030, online platforms will be required to pay VAT for services offered through them if individual service providers fail to do so. This should put an end to unfair competition, with traditional businesses paying VAT and some online sellers bypassing this obligation. Member states may choose to exempt small and medium-sized enterprises (SMEs). However, large e-commerce platforms will face new obligations to comply with VAT rules in all EU countries where they operate. Digital invoicing and tighter controls on cross-border trade VAT reporting for international transactions will be completely digitized. Businesses will have to send invoices online and automatically report VAT data to tax authorities from 2030. This will enable tax authorities to detect VAT fraud faster and more effectively. The existing One-Stop Shop (OSS) system, introduced in 2021 to simplify VAT processing within the EU, will be further expanded. This will allow more businesses to meet their VAT obligations through one portal and in one language. Less administrative burden, more VAT revenue According to the European Commission, this reform would allow member states to recover approximately €11 billion in missed VAT revenue annually. For businesses themselves, it would save €4.1 billion a year in compliance costs and reduce registration and administrative costs by €8.7 billion over 10 years. What does this mean for businesses? For companies conducting international business within the EU, VAT processing will become easier but also more strictly controlled. The digitization of invoicing and reporting means less paperwork, but also less room for error. E-commerce platforms must prepare for their new role as VAT responsible parties. This will require adjustments to their systems and potentially higher compliance costs. With the introduction of the VAT in the Digital Age (ViDA) package, the EU is taking an important step toward a more transparent and efficient VAT system. Van der Helm As your specialist in customs and VAT processing The upcoming changes make it even more important to have a reliable logistics and customs partner to fully support your VAT handling and compliance. Van der Helm Logistics specializes in customs matters and tax obligations for international trade, helping companies make a smooth transition to the new VAT rules. Want to know how these changes affect your business and how you can respond to them? Contact us for tailored advice.

From January 31 mandatory: Safety and Security Declaration for exports to UK

Effective January 31, 2025, it will be mandatory for all export cargo from the EU to the UK to submit a Safety and Security Declaration (S&S Declaration) prior to arrival at the UK port. With this, the UK government is taking another step in implementing the Border Operating Target Model. What does this mean for your export shipments? The S&S Declaration, also known as Entry Summary Declaration (ENS), must be submitted no later than two hours prior to arrival at the UK port. This is the responsibility of the UK importer, an intermediary or the transport company. However, the carrier always remains responsible for proper submission. For short-sea traffic, the shipping company or ship’s agent is responsible for the timely and correct declaration. In RoRo traffic, this responsibility lies with: Some ferry operators, such as DFDS and Stena Line, offer the option of providing this declaration on behalf of the inland operator. However, CLdN requires the inland operator to submit the declaration through their platform. Important points of interest for exporters Prepare now Although the change doesn’t take effect until Jan. 31, it’s crucial to engage with your logistics partner now. Van der Helm is ready to support you in a smooth transition. Want to know how this obligation will affect your shipments and what steps you can take now? Contact us and we will help you further.