France Imposes Measures to Eradicate VAT Fraud
The Minister of Actions and Public Accounts, Gerald Darmanin, will announce a set of measures to contain the loss of tax revenue at the Senate today. The shortfall on VAT in France is estimated to be 20 billion euro s according to the European Commission. France will take advantage of the autumn budget texts to transpose a European directive on e-commerce to be implemented by 2021. The text was initially adopted by the European states back in 2017with its aim to adopt tax rules to the explosion of e-commerce due to a revenue loss of public finances and tax disparity
France Launches a Digital Service Tax
On May 21, 2019, The French Senate presented a law project for the creation of a tax on Digital services. The new Digital Service Tax is aimed at large corporations in the digital sector whose taxable turnover exceeds 750 million Euros, and 25 million Euros for those that are provided in France. A digital service can be defined as something that allows users to communicate with each other over a digital platform that enables them to exchange goods or services such as online market place like Amazon and eBay. This also applies to advertisements that appear on a digital interface. The Digital Service Tax only applies to businesses where the end user is located in France. The new Digital Service Tax is subject to 3%.
ReBuy Expands to Italy and Spain
Berlin-based online market platform ReBuy has expanded its services to Europe. ReBuy is an online platform used for selling and buying refurbished electronic goods such as smartphones, laptops, game consoles, tablets and more. The company initially ran its online platform in Germany, UK, France, Austria and Netherlands and has now recently launched two new online stores in Spain and Italy.
Ceo Torsten Schero says, “The launch of our online store in two growth markets of Italy and Spain is another step in our ambition to become the leading e-commerce company in Europe for used electronics”