New VAT EU rules on e-Commerce since July 1, 2021

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New VAT EU rules on e-Commerce since July 1, 2021

Starting July 1, 2021, the 27 countries of the European Union will implement new VAT rules on e-commerce sales which may affect your sales of goods to consumers in the EU through online stores including Amazon, eBay, Rakuten, Bol and several others.

If your business is not registered in the EU and you are established outside the EU e.g. in China – Amazon will collect VAT on the sales of goods delivered to your B2C customers in the EU, ordered through any Amazon store, where:

  1. Goods are delivered from inventory stored outside the EU in a delivery with a value of up to EUR 150 (called Import One Stop Shop)
  2. Goods of any value are delivered from inventory stored in the EU where you, the Seller, are not established in the EU.

If you are established inside the EU, following changes to the VAT treatment and reporting of intra-EU distance sales will be introduced:

  1. Distance selling thresholds will be replaced by a general tax at destination principle for all B2C e-commerce supplies of goods, i.e. VAT is due in the destination EU country
  2. Introduction of Union One-Stop shop (OSS) simplification to report VAT on B2C sales cross EU

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