On January 25, 2018 the European Commission published its “January infringements package: key decisions”. One of the decisions included in this January infringements package is the decision of the Commission to send the United Kingdom a letter of formal notice.

According to the January infringements package the European Commission has decided to send a letter of formal notice to the United Kingdom for failing to collect and transmit to other Member States the bank account details for each taxable person registered for the recently agreed, EU-wide system for VAT collection on online sales of e-services (VAT Mini One-Stop-Shop). According to the European Commission this practice violates EU rules on administrative cooperation (Council Regulation 904/2010 and Commission Implementing Regulation 815/2012). At the moment, Member States who want to refund taxable persons in the UK have to collect additional information on a case-by-case basis, which delays refunds. If the United Kingdom does not act within the next two months, the Commission may send a reasoned opinion to the UK authorities.

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