EU VAT changes ecommerce
Directive (EU) 2017/2455 of December 5, 2017, known as "E-commerce" was initially due to enter into force on 1 January 2021. It seems like this rule will finally come into force on 1 July 2021, following the deal concluded on European level. What changes on 1 July 2021?
Creation of a one-stop shop for distance sales of imported goods
A new one-stop shop "IOSS" (Import One Stop Shop) will also be created for distance sales of imported goods valued at less than € 150. Companies using it will benefit from an exemption from import VAT.
The creation of this new IOSS counter (the use of which is optional) should be compared with the entry into force of new VAT rules, applicable to all distance sales of imported products (regardless of the value of the product).
Who is concerned ?
You are concerned if your company sells goods or services to individuals domiciled in another Member State, regardless of the e-commerce medium used: your company's website, social networks, a marketplace, etc.
The use of an "electronic interface" (of the "market place" type) to facilitate the sale of your products is also likely to impact your VAT obligations. As of 1 July 2021, the rules of territoriality and VAT liability are in fact modified to take into account their role in the distance selling of goods in the European Union.
The (optional) use of OSS and / or IOSS counters will allow, whether your business is established in the European Union or outside the European Union, to request identification in a single Member State which will allow you to declare and pay VAT for all sales and services eligible at one-stop shop.
Access and use of these "one-stop-shops" are subject to strict conditions. Depending on the volumes and flows of goods and services your business sells within the European Union, your VAT obligations may vary.
RMB's experts are at your disposal to help you determine if you are affected by these measures and help you prepare for them.
Please do not hesitate to contact us for a free preliminary check up...