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: 

• Online sellers
• Online electronic interfaces
• EU consumers
• Postal operators & couriers

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.