E-commerce: as of July 1st 2021 new VAT-regulations
On July 1st 2021, the 27 member states of the European Union (EU) will introduce sweeping reforms to the VAT obligations for B2C e-commerce sellers and marketplaces. The upcoming reform will mean some sellers will be able to report all their pan-EU sales on a single VAT return in their home country or appointed country of registration, instead of having multiple VAT registrations across the EU.
For example, the new system makes it possible to submit all foreign VAT returns through the Netherlands! It means that you no longer need to register abroad when exceeding the so-called ‘distance selling thresholds’ while selling B2C across the EU. The new regulation may, therefore, also mean that existing foreign registrations are no longer necessary and can be withdrawn.
Please be aware that there are certain criteria your business needs to fulfill before applying a new scheme.
If you would like to know more information or if you have any questions regarding EU VAT changes and how it can affect your business, please contact our office at +31 (0) 85 0187471 or via firstname.lastname@example.org. Our first-class VAT team is more than happy to assist.