EU Council adopts VAT Implementing Regulation on new VAT rules for e-commerce

On 21 November 2019, the EU Council has adopted the VAT Implementing Regulation (2019/2026) which is an amendment of the VAT Implementing Regulation (282/2011). The amendment relates to the new VAT rules for e-commerce.

These new VAT rules are part of the VAT e-commerce package that was adopted on 5 December 2017 by the EU Member States.

The amended VAT Implementing Regulation provides detailed rules on the application of speci c e-commerce provisions of the VAT Directive. Particularly, further technical clari cations are laid down regarding supplies of goods or services facilitated by online platforms to EU non-taxable customers and the records they would have to keep on sales made via their online platform.

In addition, this VAT Implementing Regulation also contains provisions with respect to the extension of the One-Stop- Shop regime to distance sales of goods in cross-border situations (both intra-Community and from third countries) and certain domestic supplies of goods.

The aim is to ensure a smooth transition to the new VAT rules for e-commerce that will enter into force on 1 January 2021.