The European Commission has published a report on the new EU-wide VAT e-commerce rules that will come into force on 1 July 2021. The new VAT rules will cover distance sales of goods and cross-border supplies of services, replacing the existing cross-border business-to-consumer rules.
Key features of the new measures include the following:
a new ‘one-stop shop’ (OSS) which will allow businesses to register in one EU member state and deal with their VAT on distance sales of goods and cross-border supplies of services in that member state via a single quarterly VAT return;
the place of supply rules will be simplified with a new EU-wide threshold of €10,000, below which distance sales/cross-border supplies will remain subject to VAT in the member state of the supplier;
above the €10,000 threshold, VAT will be paid where ‘consumption’ of the goods or services takes place (ie in the place of the customer);
the VAT exemption for low-value consignments will be removed; and
an ‘import one-stop shop’ (IOSS) will simplify declaration and payment of VAT for distance sales of goods with a value of up to €150.
The one-stop shop and import one-stop shop opened for registration on 1 April 2021.
For online sellers established outside the EU and making supplies to non-business customers in the EU, a non-union one-stop shop will be available.
The European Commission has published a report on the new EU-wide VAT e-commerce rules that will come into force on 1 July 2021. The new VAT rules will cover distance sales of goods and cross-border supplies of services, replacing the existing cross-border business-to-consumer rules.
Key features of the new measures include the following:
a new ‘one-stop shop’ (OSS) which will allow businesses to register in one EU member state and deal with their VAT on distance sales of goods and cross-border supplies of services in that member state via a single quarterly VAT return;
the place of supply rules will be simplified with a new EU-wide threshold of €10,000, below which distance sales/cross-border supplies will remain subject to VAT in the member state of the supplier;
above the €10,000 threshold, VAT will be paid where ‘consumption’ of the goods or services takes place (ie in the place of the customer);
the VAT exemption for low-value consignments will be removed; and
an ‘import one-stop shop’ (IOSS) will simplify declaration and payment of VAT for distance sales of goods with a value of up to €150.
The one-stop shop and import one-stop shop opened for registration on 1 April 2021.
For online sellers established outside the EU and making supplies to non-business customers in the EU, a non-union one-stop shop will be available.
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