A provision of the “Bill (No. 460 ) El Salvador WhatsApp Number List for the revitalization of town centers and town centers”, examined last week by the Senate , makes e-commerce players jump. Indeed, its adoption would result in a new tax indexed to the number of kilometers traveled by packages, between warehouses and customers’ homes. Why tax the deliveries of e-commerce sites? Article 27 of the bill provides for “the introduction of a tax on deliveries linked to electronic commerce, based on the number of kilometers traveled between the last place of storage and the place of delivery”. The Senate recalls that “the delivery of goods ordered electronically is not subject to any specific taxation” and that only the prohibition of free delivery for the distance sale of books has been adopted (with the consequence a 1 cent delivery on Amazon…).
In terms of value added taxes (VAT), we can distinguish national, intra-community and international trade. The ordinary VAT regime applies for national sales. Specific rules apply for sales in the European Union: status of the purchaser, location of the sale, turnover, etc. Objective: “to ensure that, beyond a certain volume of turnover , VAT is not a source of distortion of competition ”. For imports of products from a country outside the European Union, an import VAT is due by the customer, as well as customs duties. Exemptions exist, in particular according to the value of the imported goods. The Senate also recalls that “the directive of December 5, 2017 reform of the European system of VAT applied to distance selling companies”. E-commerce companies will be subject to the VAT rate of the buying country
A Tax Of 50 Cents Per Kilometer?
“(from January 1, 2019) and they will have to make all of their VAT declarations with a unique identifier allowing the amounts of taxes collected to be returned to each Member State. . The VAT exemption on imports of small consignments of negligible value will be abolished (these two rules must be transposed into national law by December 31, 2020). These provisions are clearly not sufficient in the eyes of the working group on the revitalization of town centers and town centers, which is proposing a new tax on deliveries from e-commerce sites. A tax of 50 cents per kilometer? The proposal is as follows: it is a “tax […] which is based on the number of kilometers traveled by the good between its last place of storage and the buyer’s final delivery address”. If the good comes from abroad, “the accounting
] means the point of entry into France”. The rate is set at “0.5 euro per kilometer, with a minimum flat rate of 3 euros per delivery”. Several exemptions are planned depending on the transport used (if not consuming fossil energy) and the turnover of companies (the tax would be applied to companies whose annual turnover exceeds 50 million euros). Producers who market their products in the short circuit would also benefit from an exemption. This tax would be paid “by the merchant, on the website from which the goods were ordered”. It would be collected “by the State” then “distributed between local authorities and EPCIs with their own taxation, eligible for the provision
The Opinion Of The Senate Finance Committee
…of equipment for rural areas and signatories of an agreement relating to an” operation of economic safeguard and revitalization ” (TO DARE). Concerning this distribution, the text specifies that it “is carried out in proportion to the areas concerned by the operations of economic safeguard and revitalization. ” The opinion of the Senate finance committee The Senate Finance Committee shares the findings of the working group behind this proposal. She believes that “ensuring fair competition between online commerce and retail is a necessity”. But she indicates that “the proposed solution does not cover all online commerce and poses practical problems”: The tax would easily be passed on to consumers. It is likely to lead to inequality between territories. Identifying the “last place of storage” could prove to be complex
The Senate cites an interesting example, which shows the inequalities that such a tax would entail: “for a USB key ordered online and imported from China, arriving in France by plane at Roissy airport, the amount of tax would vary from 15 to 350 euros depending on whether the consumer lives in Paris or Toulouse ”. Beyond the inequality, can we seriously consider a tax of 350 € for a USB key? The other remarks of the Senate concern the difficult implementation of such a tax: How to calculate the kilometers traveled: as the crow flies or according to the journey actually made by the entire delivery process? The exemption for companies with a turnover of less than 50 million euros “[would] leave aside a considerable part of online commerce”. The business model of the major e-commerce players would only be partially understood w