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.