New VAT rules for the distance sale of goods will apply from July 2021 with the implementation of the EU VAT e-commerce package. The changes include the expansion of the One-Stop-Shop solution (OSS), the harmonisation of threshold values and the elimination of the tax exemption for small value shipments.
As of 1 July 2021, the place of distance sale of goods within the EU or distance sale of goods imported from third countries will in principle be the Member State in which the dispatch or transport of goods to the customer ends (the Member State of consumption). The VAT shall be paid in those Member States of consumption. These rules currently apply to distance sales from one EU Member State to another. The same rule will be implemented in the case of imported goods, explain the Ecovis experts.
Source: ECOVIS
