ARTICLE · 14 MAY 2021

The New VAT Rules For E-commerce Are Approaching!

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By 1 July 2021, pursuant to the amended EU directive and the execution directive, new VAT rules for e-commerce will come into force.

European UnionTax

By 1 July 2021, pursuant to the amended EU directive and the execution directive, new VAT rules for e-commerce will come into force. It is therefore time for all businesses with e-commerce activities to prepare for this.

Due to the corona crisis, the European Commission had postponed the entry into force of this new VAT rules from 1 January to 1 July 2021.

So there is not much time left to comply.

The aim of the new rules is twofold: (i) to simplify the levying of VAT on cross-border 'internet sales' of goods and services to consumers (B2C) and (ii) to guarantee fair competition within and outside the EU.

What exactly will change?

Several changes are made to the current system. Below we highlight the most important changes:

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