EU VAT and B2C E-Commerce, the rules will change July 1, 2021 – Chapter 5 – Union scheme – Extension of the OSS

Extension to intra-EU distance sales of goods (B2C):

  • Become systematically subject to VAT in the MS of the customer (where the transport ends – transport direct or indirectly paid by the supplier)
  • Current thresholds of EUR 35K to 100K (per MS of destination) are removed => replaced by EUR 10K threshold (supplies to ALL MS)
  • The OSS can be used to declare and pay VAT due in other MS
  • No more mandatory invoice requirements for such sales

Above thresholds – How it works:

  • VAT of jurisdiction of consumption applies and VAT accrues to jurisdiction of consumption
  • Example: A German (DE) retailer sells goods via distance selling to consumer in other EU Member States
  • Before July 1, 2021: DE retailer to register for VAT in all jurisdictions of consumption
  • Simplified compliance: OSS in Member State of identification
  • Single VAT reporting and VAT payment covering all countries where goods are sold

Below thresholds

  • DE retailer to register for VAT in Germany
  • German VAT applicable on all sales incl. to non-German consumers

See also



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