EU Lawmakers Pass E-Commerce Rules Aimed at Fighting VAT Fraud

European Union rules requiring online service providers to hand over value-added tax data for all cross-border electronic commerce purchases passed the final legislative hurdle Dec. 17.

The European Parliament approved the rules in a 591-18 vote, with 68 abstentions. The new legislation is designed to combat e-commerce fraud, which the European Commission estimates costs EU countries 5 billion euros ($5.6 billion) annually.

“With the continued rise in electronic commerce sales this legislation is vital to ensure that governments can prevent large losses in revenue that occur in some countries when it comes to retail ...