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Preliminary agreement to defer VAT e-commerce package and DAC6 deferral agreed

  • EU
  • June 26th 2020
  • By Mark Hammond-Giles

Member State ambassadors to the EU have reached a preliminary agreement on postponing the introduction of the VAT e-commerce package from 1 January 2021 to 1 July 2021. The postponement is expected to be formally adopted by the Council, without further discussion, once the text has undergone a legal and linguistic review. The European Commission had proposed postponing the entry into force of the new measures to take account of the difficulties that businesses and Member States are facing as a result of the COVID-19 crisis. The Council also adopted an amendment allowing Member States an option to defer by up to 6 months the time limits for filing and exchanging information under the Directive on Administrative Cooperation (DAC6).

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