VAT e-commerce package for B2C transactions

A VAT e-commerce package for business-to-consumer (B2C) transactions came into force as from 1 July 2021. It has several objectives:

  • to facilitate online sales within the EU market by easing the VAT compliance burden;
  • to achieve equal treatment of EU and non-EU operators selling goods on the European market;
  • to move towards implementing the principle of taxation in the Member State of the destination of goods for B2C transactions.

The main changes in this regard are listed below, and are described in further detail in our VAT e-commerce brochure available here_

1) Extension of the mini One Stop Shop (MOSS)

2) Removal of distance sales of goods thresholds

3) Removal of the VAT exemption for imports of low-value goods

4) VAT liability of electronic interfaces (“deemed supplier”)

This VAT reform has the potential to significantly affect the VAT burden on electronic operators performing B2C sales. Responses to it should be managed carefully, taking into consideration the pros and cons of the new VAT tools available. For more details, please consult our VAT e-commerce brochure here_