Changes to VAT eCommerce rules - 1 July 2021

A number of important amendments have been made to the Value-Added Tax (VAT) Directive to simplify VAT obligations as regards eCommerce activities. These changes will enter into force from 1 July 2021.


The VAT e-commerce package will facilitate cross-border trade, combat VAT fraud and ensure fair competition for EU businesses.


The new rules include: 

  • Improvements of the current MOSS. 
  • Special provisions applicable to supplies of goods facilitated by electronic interfaces. 
  • Extension of the scope of the MOSS, turning it into a One Stop Shop (OSS).
  • B2C supplies of services other than TBE services. 
  • Intra-EU distance sales of goods. 
  • Certain domestic supplies of goods facilitated by electronic interfaces. 
  • Distance sales of goods imported from third territories and third countries in consignments of an intrinsic value of maximum EUR 150. 

Who will be affected: 

Who will benefit from this proposal? 

  • Businesses will benefit from a substantial reduction in cross-border VAT compliance costs. This will facilitate greater cross-border trade. 
  • EU businesses will be able to compete on equal footing with non-EU businesses that are not charging VAT. 
  • Member States will gain through an increase in VAT revenues of EUR 7 billion annually. 

For more information read Modernising VAT for cross-border e-commerce or join us on 21 April for a webinar with SFA member Catherine McGovern, Tax Partner with PKF O'Connor, Leddy & Holmes ‘VAT Alert – eCommerce VAT changes 1 July 2021  and Refresher on  Brexit VAT’.


In this webinar Catherine will be updating SFA members on significant VAT changes for eCommerce Business to Consumers (B2C) sale of goods from 1 July 2021. She will also discuss the key VAT changes as a result of Brexit.


Register now for this important webinar.

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