Increasingly more countries are amending their national rules directly applicable to e-commerce companies to help their government collect taxes on goods and services a foreign company supplies to their residents. The amendments apply to EU-registered and third-country companies making distant sales of goods and providing services to consumers in the member states. Together with other firms of the PwC network in various countries around the globe, PwC Latvia can help traders keep abreast of the extensive regulatory changes and overcome obstacles to cross-border trading online.
Rapid evolution
Just like e-commerce itself, the tax treatment of e-commerce companies is rapidly evolving. Increasingly more countries are adopting rules in order to tax distant sales of goods, electronically supplied services, and various services supplied as part of the sharing economy.
Supplying goods and services to foreign consumers may create an obligation to meet tax law requirements in various countries.
E-commerce companies are facing a situation where the existing tax rules are silent on their business model, causing confusion or even adverse tax consequences in certain cases.
How we can help
- Determine what taxes are payable, in which country, and at what rates
- Help assess the tax and customs implications when expanding business to a new country
- Provide assistance with tax registration and offer accounting services
- Keep abreast of changes to the tax and customs rules and assess their impact on your company and compliance requirements
- Assess whether your accounting systems are in line with the tax rules and help choose suitable systems
- Provide assistance in preparing for and conducting negotiations with tax authorities
News for e-traders
- VAT treatment across the EU from 1 July 2021
VAT treatment across the EU from 1 July 2021
Given the European Commission’s long-term commitment to creating a VAT system that is more straightforward and secure against fraud, companies doing cross-border trade are facing a number of significant changes to the VAT treatment from 1 July 2021.
These changes allow you to start making cross-border supplies of goods and services to consumers according to new schemes that substantially simplify how VAT is paid in other member states on goods and services you supply to consumers.
PwC would be happy to help you assess the impact of these changes and stay compliant.
Our team has prepared a leaflet summarising key changes.
Leaflet in Latvian (PDF; 199 KB) Leaflet in Englis (PDF; 179 KB) Leaflet in Russian (PDF; 191 KB)
Video on amendments to the VAT regulation
PwC's Belgian, Dutch and British colleagues gave a presentation on the amendments to the VAT regulation, which will enters into force on 1 July 2021 throughout the European Union at the same time. This presentation provided information on significant changes in the VAT regulation, its impact on customs, as well as potential problem situations that e-merchants may face after the entry into force of the amendments. Worth watching for e-merchants affected by the new amendments.
VAT treatment of online shopping from buyer’s viewpoint
When employees are sent on business trips abroad, various online platforms are increasingly used for booking the necessary accommodation and transport services. A variety of other goods and services are also being ordered online from foreign vendors. Any documents received often fail to make it clear whether VAT has been charged on the supply and who is the other party (the platform or its customer). This article explores a few models commonly found across the EU from the buyer’s point of view.
VAT Act to be amended on e-commerce
The Cabinet of Ministers is to debate proposals for amending the VAT Act that provide for transposing three Council directives that prescribe the VAT treatment of e-commerce by expanding the scope of special VAT schemes and introducing a new scheme for goods imported from third countries or territories. We have written earlier about the expected EU changes to the VAT treatment of e-commerce from 2021.
