Germany approves draft law to crack down on VAT fraud in e-commerce
The German government today approved a draft law to crack down on VAT fraud in online sales by tightening the rules for e-commerce giants like Amazon and eBay.
"We are ending the illegal practice of some vendors on online marketplaces who evade the sales tax and unfairly give themselves competitive advantages," Finance Minister Olaf Scholz said in a statement.
The proposed legislation, which still needs to go through parliament, would oblige online shopping platforms to track sales by third-party companies on their website and pass the relevant information on to the finance ministry so those firms can be taxed.
The proposed German legislation would take effect in 2019, two years before a similar scheme for the entire European Union comes into force.
A spokesman for eBay told DPA news agency that the company has "no tolerance for vendors who fail to comply with their legal obligations on the eBay marketplace".
But he also criticised Germany for rushing in measures ahead of the EU-wide legislation.
"Any unilateral actions that lead to legal fragmentation pose a huge burden for global companies," he said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)