Proposal to modernize VAT for e-commerce

The proposals cover the following areas:

Extension of the existing Mini One Stop Shop (MOSS) system to distant sales of goods, to other than digital services to end consumers, as well as to distant sales from third countries. Removal of limits for distant sales within the EU.
Introduction of a new yearly threshold within the application of the Mini One Stop Shop (MOSS) scheme, under which businesses selling cross-border can continue to apply the VAT rules of their home country.
Removal of low value consignment relief for import of goods from third countries. Introduction of simplified rules for global reporting and settlement of VAT upon import of goods designated for final consumers. In order to qualify for the special scheme, consignments must have a value not exceeding EUR 150.
Simplified rules for customer identification.
Allowing EU suppliers to apply the invoicing and record keeping rules of their home country.
Improvement of coordination among EU member states when performing VAT audits on business entering into cross-border transactions. 
In addition to the above, the European Commission published a legislative proposal for introduction of reduced VAT rates for e-publications.

The proposals follow up on the commitments made by the European Commission in the VAT Action plan released on 7 April 2016 and are subject to further stages of the legislative process.

The legislative proposals can be viewed here.