E-commerce in the EU saw a VAT revolution on 1 July 2021, introducing the e-commerce VAT package. One of the package’s aims is to ensure that VAT is accounted for in the Member State where consumption takes place for B2C cross-border supplies of goods – this equates to where the goods are delivered. There is an exemption of €10,000 for EU established micro-businesses. Still, the reality is that most businesses selling intra-EU B2C goods will have to account for VAT in a greater number of countries than previously.
To compensate for this, the European Commission has significantly extended the Mini One Stop Shop that was in place before July 2021 into three new versions. One of these versions is for intra-EU B2C sales of goods declared via the Union OSS, which, despite its name, is used by EU and non-EU established businesses for such sales.
Source: SOVOS
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