Payment Service Providers are Urged to Collaborate with VAT Authorities to Combat E-commerce VAT Fraud
The EU Commissions recently proposed a new EU regulation where payment services providers are required to help tax authorities to combat e-commerce VAT Fraud. Nowadays, it is easy for fraudsters to hide their identity online by operating behind a domain name which is often difficult for tax authorities to trace its real business name, location and its actual turnover amount. The new VAT legislation for e-commerce heavily relies on third parties to voluntarily share data with EU member states which will help tax authorities identify the payee, its service transaction,amount, origin of payment, and also the time and date of when the purchase was made
Klarna Discontinues Wavy App
Just two years after its release, the Swedish company Klarna announced that its peer to peer payment app ‘Wavy’ will no longer be available from 6th August. However, some of its functions will be integrated into the Klarna app. Existing users are currently being informed that they can no longer use this service after this date, and any credit remaining on their account can be withdrawn until the deadline. Uncollected credit after the deadline will automatically be transferred to the customer’s deposit account.
Wavy allows users across Europe to send money between themselves without any fees, and it was also a method of payment for shopping online.
Amazon Introduces New Finance Option, and Builds 5th Distribution Centre In Spain
Amazon has introduced a new financial service in Spain called “Pay in 4” which will allow Prime members to spread the cost of their purchases into four installments over the course of three months. The first installment will need to be made immediately, and the price of the goods has to be priced between €75 - €1000. This option is available to select at checkout. In the meantime, Amazon is also launching its 5th distribution centre in Spain, which will be located in the Bilbao area, and will have over 50 workers operating the distribution centre. Amazon will also be collaborating with local drivers to help out with the logistics.