Friday, July 5, 2019
On June 28, 2019, the Swedish Government announced that it has begun the legislative process to implement European Union e-commerce value-added tax reforms.
Changes are being proposed, in line with EU proposals, ahead of the introduction of the definitive VAT regime, centered on taxation in the location of the consumer. These changes, proposed to be in place from 2021, will also involve the expansion of the one-stop shop system, which enables businesses to undertake all VAT administrative obligations with a single member state tax authority for all of their EU VAT operations.
Under the EU-level reforms, which Sweden is seeking to transpose into domestic law, online marketplaces will be considered to act as the seller, and held liable for evaded VAT, when they facilitate sales by non-EU businesses using their platform of goods with a value of up to EUR150 (USD170) to customers in the EU.
The same rules will apply when non-EU businesses use online platforms to sell goods from "fulfillment centers" in the EU, irrespective of their value, allowing tax authorities to claim the VAT due on those sales.
EU member states have been encouraged to ensure these rules are in place in time for 2021.
Under the framework, online platforms will be expected to keep records of sales of goods or services made by businesses using their platform.