Recap of the 1 July marketplaces/platforms amendments

European Commission

Since 1 July 2021, the VAT rules on cross-border business-to-consumer (B2C) e-commerce activities have changed:

• Online sellers, including online marketplaces/platforms can register in one EU Member State and this is valid for the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU.
• The existing thresholds for distance sales of goods within the EU has been abolished and replaced by a new EU-wide threshold of EUR10 000. Below this EUR10 000 threshold, the supplies of TBE (telecommunications, broadcasting and electronic) services and distance sales of goods within the EU may remain subject to VAT in the Member State where the taxable person is established.
• Special provisions have been introduced whereby online marketplaces/platforms facilitating supplies of goods are deemed for VAT purposes to have received and supplied the goods themselves (deemed supplier).
• New record keeping requirements have been introduced for online marketplaces/platforms facilitating supplies of goods and services, including where such online marketplaces/platform are not a deemed supplier.
• The VAT exemption at importation of small consignments of a value up to EUR22 have been removed. This means all goods imported in the EU are now subject to VAT.
• A so-called “import one-stop shop” has been introduced, which allows suppliers and electronic interfaces selling imported goods to buyers in the EU to collect, declare and pay the VAT to the tax authorities.