Demistifying new E-Commerce VAT rules in the EU – How to determine the VAT rate of your goods/services in all European Union Member States?

The VAT rules on E-Commerce transactions in the European Union will change per July 1, 2021.

With the removal of the thresholds, any B2C sale of goods will subject to the VAT rate applicable in the country of the consumer. The challenge will be on how to determine of the correct VAT rate for a given product in those countries in which E-Commerce sellers are not familiar with.

Here is the solution, the EU VAT Rate determination tool.

For goods it works with the CN code.
For services it uses the CPA code,

See also 

• Other newsitems in the serie of articles on ”Demistifying new E-Commerce VAT rules in the EU”
• EU VAT and B2C E-Commerce: Overview of the changes on 1 July 2021
• EU VAT and B2C E-Commerce, the rules will change July 1, 2021 – Chapter 6 – Extension of the OSS to distance sales of imported goods (Import scheme)

Source EU VAT Rate determination tool

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