- Introduction of the eCommerce Package: The eCommerce package that took effect on July 1, 2021, established new tax provisions for determining the place of supply for intra-community distance sales of goods, particularly focusing on the destination-based principle, where VAT is charged based on the customer’s location.
- Scope and Parameters of Intra-EU Distance Sales: Intra-EU supply of goods involves goods being dispatched from one Member State to another, with the supplier participating in the transportation. The transactions can occur through various channels, including mail order, tele-sales, and e-commerce platforms, and must involve customers who are either natural persons or specific legal entities.
- Options for EU-Based Suppliers: EU-based suppliers can choose between registering for VAT in each Member State they sell to or utilizing the simplified One-Stop Shop (OSS) scheme to streamline compliance and reduce costs associated with reporting VAT across multiple jurisdictions. This flexibility is designed to facilitate cross-border e-commerce within the EU.
Source 1stopvat
