Online retailers based outside of the European Union (EU) have an extra incentive to scrutinize new rules that will take effect next year: They may no longer need to register for VAT.
These rules, scheduled to take effect Jan. 1, 2021, are designed to establish a level playing field, but they will also create new compliance obligations for some companies while creating additional uncertainty for others. Whether—and how—these rules apply will in many cases depend on a company’s business and/or distribution models, as well as structure (e.g., the number of legal entities it has).
Source: Vertex
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