The measure proposed by the European Commission intends to deliver One Stop Shop for all electronically delivered services. According to the Commission, as from 1st January 2015, it will benefit businesses dealing with multiple VAT obligations that can be very burdensome and costly. The One Stop Shop approach for EU trade across borders will be applied first to e-commerce, broadcasting and telecom services. In the future the Commission will seek to extend the One Stop Shop to other goods and services.

The European Commission presented a new proposal to boost the One Stop Shop for cross border VAT compliance. The proposal adopted is a first step towards a One Stop Shop for all electronically delivered services that will benefit businesses as from 1st January 2015. But first, the One Stop Shop approach for EU trade across borders will be applied first to e-commerce, broadcasting and telecom services. The proposal was presented by the Commission in a Communication issued in December 2011.

According to Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-fraud and Audit, the One Stop Shop will greatly facilitate cross border expansion of European start ups. This in turn will help to generate growth and jobs. The proposal relates to aspects such as the scope of the scheme, reporting obligations, VAT returns, currency, payments, records and so on for which common rules are necessary.

In particular, the implementation on 1st January 2015 of a mini One Stop Shop for the EU providers of telecommunications, broadcasting and electronic services to consumers will be a big step forward in simplifying VAT compliance rules in the EU, from the Commission's point of view. On this way, the One Stop Shop will allow businesses to declare and pay the VAT in the Member State where they are established rather than where their customer belongs.