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Commission Explanatory Notes on e-Commerce VAT package

  • EU
  • October 06th 2020
  • By Mark Hammond-Giles

The European Commission has published Explanatory Notes on the new VAT e-commerce package, containing detailed explanations and practical examples of how the new rules will affect suppliers and online marketplaces involved in e-commerce transactions. The changes being introduced from 1 July 2021 include extension of the Mini One-Stop Shop to a One Stop Shop to deal with all types of cross-border services to final consumers in the EU (where the place of taxation is in the EU) as well as distance sales of goods to EU consumers; removal of the import VAT exemption for low value consignments, with VAT on distance sales of goods not exceeding €150 from outside the EU being accounted for via an Import One Stop Shop (IOSS), or an alternative simplified mechanism for customs declarants (eg, postal operators, couriers etc) to collect the import VAT; and new rules for electronic interfaces such as marketplaces or platforms, which deem them for VAT purposes (in certain scenarios) to be the supplier of goods sold to customers in the EU, and make them liable for collecting and paying VAT on these sales. 

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