On 1st July 2021, new rules concerning VAT on eCommerce transactions in the EU come into effect. It’s important to understand how this may affect your business. The main purpose of this initiative is to simplify VAT obligations in relation to eCommerce activity.
How will the 2021 eCommerce Vat changes affect me?
If your business facilitates sales or deliveries (distance sellers) within the EU then you may be affected. As it stands, the current thresholds for distance sale of goods in the EU will be abolished and replaced by a €10,000 threshold across the board.
Online sellers can now register for VAT obligations in one EU Member state which can then be used for declarations on all goods and services sold within in the EU. It’s important to note that all orders sent to the EU are now subject to VAT.
What to do next?
If you have any questions on potential implications, please review the following resources:
https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en
