E-commerce rules set to change in the EU
As of 1 July 2021, new VAT rules regarding e-commerce will enter into force in the European Union (EU). These rules are of importance to all businesses involved in cross-border sales of goods to consumers in the EU. It is not relevant whether you are established in an EU country or a non-EU country. The changes are far reaching and in some cases very complicated. In many cases, changes to your systems and processes will be required. If you sell goods to consumers in the EU, please ensure you are up-to-speed on the VAT consequences for your business.
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Goods from outside of the EU sent to a consumer in the EU
Do you have a business and do you sell and ship goods from a non-EU country to consumers in the European Union (EU)? Then pay close attention! As of 1 July 2021, a lot will change in the EU. New VAT rules will come into force, causing additional obligations for your business. However, aside from obligations, these new rules may also offer opportunities. The whole EU is within your reach! Beware! The country in which your business is established, is not relevant for these rules. These rules apply to businesses established in the EU, but also to businesses established in a non-EU country.
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Goods inside of the EU sent to a consumer within the EU
As of 1 July 2021, changes will occur in the European Union (EU), for businesses that sell goods to consumers. If your stock is kept within the EU and you sell these goods to consumers within the EU, then these changes are of relevance to you. Beware! The country where your business is established is irrelevant for these rules. The rules apply to businesses established in the EU, but also to businesses established in a non-EU country.
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Platforms that facilitate sales to consumers
Platforms are indispensable in today’s economy. Consumers buy an incredible amount through these platforms. Platforms therefore play a very important role for both suppliers and consumers. As of 1 July 2021, a lot will change in the European Union (EU) in the area of e-commerce and VAT. New rules are set to be introduced for platforms that facilitate sales of goods to consumers.
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Payment service providers
The European Commission has been combatting VAT fraud for some time now. To this end, new VAT laws and regulations are set to be introduced. The collection of VAT will be further centralised, and the tax authorities will have more information at their disposal. What does this mean for payment service providers?
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Postal operators, couriers and customs agents
As of 1 July 2021, new VAT rules will apply to cross-border sales of goods to EU individuals in the European Union (EU). Additionally, new EU VAT rules will apply for the import of goods (from non-EU countries), which have been sold to consumers. These new rules are not only relevant for the parties that are directly involved in such flows, such as the supplier and the consumer. Postal operators, couriers and customs agents such as yourself (or your business), which ship consignments from outside of the EU to the EU, or take care of clearance in the EU, will also be affected.
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