May 2000: THE European Commission has announced plans to amend the 6th VAT Directive to boost e-commerce within the European Union.

The changes will put all e-commerce companies on the same footing by obliging non-EU businesses to have a single place of registration within the community for tax purposes, and have accountability to a single tax administration.

Frits Bolkestein, EC member in charge of internal market and taxation, said: 'E-commerce opens the European market for cross-border business, as it does not recognise frontiers. The existing EU VAT system effectively discriminates against European e-commerce operators and can place non-EU businesses at a competitive advantage.' Bolkestein insisted, however, that existing taxes will continue to apply to e-commerce, even if the Commission has no plans to introduce new or additional taxes.