EU VAT and B2C E-Commerce: Overview of the changes on 1 July 2021 – Consolidated version

The EU VAT rules for e-commerce will change on 1 July 2021. In order to create a level playing field for webshops established inside and outside of the European Union, all B2C sales of goods will become subject to VAT in the EU country where the customer receives the goods.

Non-EU webshops will thus have to start charging local VAT on their B2C sales. This vat can be reported and paid via an EU VAT registration in a single EU country, and the local platform that this tax authority must make available. This IOSS (Import One Stop Shop) or OSS (One Stop Shop) platform is based on the current MOSS (Mini One Stop Shop) scheme that exists for electronic services already.
VATupdate.com has many posts dealing with the new rules. In this post you find link to the relevant rules and changes all-in one place.

• Chapter 1 – Current VAT rules on Distance Sales of Goods (Before July 1, 2021)
• Chapter 2 – Legislative acts for the implementation of the new E-Commerce VAT rules
• Chapter 3 – Services: Improvements to the Mini One Stop Shop in 2019-2021
• Chapter 4 – New art. 33 in the EU VAT Directive 2006/112/EU – Place of Supply Rules for Distance Sales of Goods
• Chapter 5 – Union scheme – Extension of the OSS
• Chapter 6 – Extension of the OSS to distance sales of imported goods (Import scheme)
• Chapter 7 – Special arrangement for declaration and importation if IOSS is not used
• Chapter 8 – Supplies facilitated by electronic interfaces (EI)

 

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