The e-commerce VAT package is due to come into force today, 1
July 2021.
The changes contained in the package will have a significant
impact for any business selling goods and/or services to consumers
(i.e. private individuals and non-VAT registered persons) across
the EU. The changes also affect marketplaces and platforms
facilitating such sales where the value of goods is below
€150.
B2C services
EU distance sales
As a reminder, the VAT package removes existing "distance
sales" thresholds. Once the value of all goods (and certain
services) sold to consumers in other EU Member States in the
previous 12 months reaches €10,000, the business will need to
account for VAT at the rate applicable in the country where the
delivery of the goods ends. Consequently, many businesses selling
goods to consumers in multiple EU countries where those values are
relatively low, may now find themselves liable to VAT in all EU
countries where their customers reside.
