If you are distance selling within the EU or if you are selling your products online from outside the EU to a European country then your business will be affected by the new changes taking place.
Of course, the sellers themselves will be affected but this will, in turn, have an impact on every aspect of the supply chain.
Who will be affected by the VAT changes in July 2021:
- If you are a distance seller selling your products in the EU via your website or through an online marketplace then your business will be affected.
- Online marketplaces that facilitate sales inside and outside the EU such as EBAY, Amazon, ETSY etc. will be affected as well, as now, in many cases, they will have the obligation to collect and remit VAT instead of the seller.
- EU consumers will be affected in a number of ways as now they will have to pay VAT for all of their online purchases outside their country of residence as VAT exemption for low-value consignments will be removed. At the same time, consumers should appreciate knowing that when buying goods online from outside or inside the EU, the VAT rate applied is the same as for goods acquired in their home country.
- Postal operators and couriers. Since the low-value consignment exemption will be abolished, postal operators and couriers will have to check all products for customs clearance and, in many cases, they will have to collect VAT for each consignment from the recepients. New systems will have to be introduced and not all countries are close to having their systems updated for the changes that will take place.
If you believe that your business is affected by these changes GVC can help you become ready for the upcoming changes so you can focus on growing your business.