Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

European Commission publishes guidance on new e-commerce rules

29 June 2021
Issue: 4798 / Categories: News

New VAT rules on cross-border business-to-consumer (B2C) e-commerce activities apply from 1 July 2021. The rationale for these changes is to overcome the barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments.

The changes apply to sales by non-EU suppliers to EU consumers so UK businesses with EU consumer customers will be affected.

The main changes are:

  • a new one-stop shop (OSS) which will allow businesses to register in one EU member state and deal with their VAT on distance sales of goods and cross-border supplies of services in that member state via a single quarterly VAT return;
  • the place of supply rules will be simplified with a new EU-wide threshold of €10 000 below which distance sales/cross-border supplies will remain subject to VAT in the member state of...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon