resources-post-top-bg New E-Commerce VAT rules from 1 July 2021

New E-Commerce VAT rules from 1 July 2021

VAT News Updates

7th April 2021: The introduction of the new E-Commerce VAT rules from 1 July 2021 means online sellers are now beginning to prepare.

E-Commerce VAT rules 1 July 2021

Online sellers are now preparing for the introduction of the new E-commerce VAT rules from 1 July 2021.

These amendments will significantly change the way VAT operates for cross-border business-to-consumer (B2C) e-commerce activities in the European Union (EU).

The main changes that will enter into force from 1 July 2021 are as follows:

  • Extension of the VAT Mini One Stop Shop (MOSS) to a One Stop Shop (OSS)
  • The treatment of Online Marketplaces and Platforms as deemed suppliers for certain transactions
  • Introduction of a new Import One Stop Shop (IOSS)
  • Introduction of Special Arrangements for certain imports of goods.

As we know, OSS is an extension of the current MOSS. This simplifies the VAT obligations for businesses selling their goods and services to consumers in the EU.

The IOSS will report distance sales of goods imported from outside the EU.

EU suppliers are required to register under the OSS/IOSS regime in the Member State where they are established. Non-EU suppliers of services may register under the non-Union OSS regime in any Member State and under the Union scheme for intra-community distance sale of goods in the Member state of dispatch.

For IOSS, a non-EU established supplier must register for this indirectly through the appointment of an intermediary (unless the non-EU supplier is established in a country where the EU has a VAT mutual assistance agreement in place). If an intermediary is appointed, registration will be done in the Member State of establishment of the intermediary. If no intermediary is appointed, registration will be done in the Member State of choice.

Pre-registration for the various schemes is available from 1 April 2021.

European Union: New VAT rules for E-Commerce

If you missed our blog earlier this year about the European Union: New VAT rules for E-Commerce, you can catch up now.

Read the full story here.

Work with real VAT experts

With over 15 years’ experience in the area of VAT compliance and consultancy, we handle all countries and languages where VAT obligations exist. We have a dedicated & centralized team of VAT experts, with a reputation of excellence within all global tax offices ready to speak to you about your VAT obligations.

See more Taxback International Articles

European Union: New VAT rules for e-Commerce

6th February 2021: From 1 July 2021, the EU will introduce a number of key changes that will impact online sellers for sales within the EU and into the EU.

E-Commerce 2021: Big changes to VAT compliance requirements within EU and UK

6th October 2020: In 2021, the UK and the EU will introduce a number of VAT compliance changes in relation to cross border, business to consumer activities.

Post Brexit VAT treatment of B2B transactions including reverse charge on services

3rd February 2021: Reverse charge VAT and what has changed post Brexit.