New rules will be introduced by the EU regarding e-commerce and VAT after July 1st 2021 but should you wait till then? The answer is no.
If Brexit taught us one thing, that is to be proactive on your VAT compliance obligations as VAT & EORI registrations have been queued by the authorities and companies are having their VAT reports delayed and their products held at customs.
Everyone in the international and cross country e-commerce supply chain will be affected such as sellers and marketplaces. Postal operators will be affected as well with Germany and The Netherlands falling behind schedule in updating their systems to be ready for all the changes that will take place.
In short, the main changes that will take place on July 1st are:
The new rules will help a lot in reducing VAT fraud and in making the environment fairer for EU businesses to sell their products in the EU territory. At the same time it will simplify the process of VAT reporting by using the unified 10.000 threshold instead of each country having its own set threshold.
If you are a distance seller (or marketplace) inside or outside the EU and you are trading with EU countries then you need to have a new assessment of your company’s VAT obligations.
Contact GVC by clicking below in order to be prepared for the upcoming July changes