The EU’s VAT e-commerce package is simplifying VAT rules on cross-border sales to EU-based customers. This post addresses the package’s final measures, which will affect the supply of services by both EU and non-EU businesses.
In January 2021, the EU will implement new VAT rules on products sold across borders through online platforms such as Amazon and eBay. Companies selling tech gadgets, clothing and other tangible goods to EU-based customers must comply.
Mexico has joined the growing list of countries imposing a digital tax. In this case, Mexico has extended its VAT law to cover certain digital services provided by foreign suppliers.
In a recent interview, the managing director of Vistra’s Reading, UK office said of operating internationally: “VAT and indirect taxes look deceptively simple but can go horribly wrong on a small detail, especially with cross-border transactions.” The bottom line is that if your organization operates abroad or is considering international expansion, you’ll have to understand and follow the indirect tax laws of each country of operation. Failure to comply with VAT rules, or to understand your entitlements under local law, can lead to additional costs, unanticipated tax liabilities, potentially needless VAT registrations and of course financial penalties.
The EU adopted a VAT Action Plan in 2016, and four so-called “VAT quick fixes” from the plan are going into effect in January. The quick fixes apply to all businesses — both EU- and non-EU-based — that trade in the bloc. We summarize the fixes and tell you how they apply in three common cross-border supply situations.
In this second post of a two-part series, we look at how coming EU VAT changes will affect e-commerce businesses based outside the European Union. We also look at the role of online marketplaces under the changes.
If your business sells or plans to sell goods online to EU-based customers, there are important VAT changes coming. In this first post of a two-part series, we explain what these changes mean for businesses that have an EU presence.
Vistra’s Pete Doyle has helped companies expand into the UK for nearly three decades. In this interview, he talks about evolving corporate expansion strategies, the top risks of operating in the UK, why complying with VAT requirements has an outsized importance for multinationals, and more.