European Union: New E-commerce VAT Regulations
Simplified valued added tax (VAT) regulations for e-commerce have been adopted by the Council of the European Union on December 5, 2017. A summary of the rules are as follows:
- Effective 2019, simplification measures will apply to all intra-EU supplies of services. Taxable persons with annual sales of less than €10,000 will continue to apply the respective VAT regulations of their home country.
- Effective 2021, the one-stop shop scheme will be extended to distance sales of goods, both intra-EU and from third countries. Taxable persons with annual sales of less than €10,000 will continue to apply general VAT regulations.
- Effective 2021, the small consignment VAT exemption will be eliminated with regards to distance sale of goods.