E-commerce

The VAT rules for e-commerce will be amended effective 1 July 2021. The amendments can have a major impact on your business and your current operational processes.

We have set up a dedicated page for you listing all the details of the changing rules.

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Welcome to the VanLoman e-commerce page

We provide full-service VAT advice to national and international businesses operating in e-commerce. The new VAT rules for e-commerce will enter into effect on 1 July 2021

Our team will be happy to advise you on the VAT rules for e-commerce and their impact on your business.

Would you like to know more? Take a look at the overview of the most important changes per topic below or download our whitepaper here.

For other questions about e-commerce, you can always contact our office at +3120 760 4500.

Effective 1 July: New VAT rules for e-commerce

The VAT rules for e-commerce will be amended effective 1 July 2021. The purpose of these amendments is to modernise the current VAT rules for e-commerce and to simplify the related administration. These amendments only pertain to B2C sales, i.e. sales to consumers/parties that are not businesses for VAT purposes. The rules for B2B services and supplies, i.e. services and supplies to other parties that are businesses for VAT purposes, will not change. The amendments can have a major impact on your business and your current operational processes.

VanLoman would be happy to help you identify the consequences for your business. In addition, it would be our pleasure to act as sparring partner and contribute ideas towards a proper configuration of your VAT administration as from 1 July 2021.

The abolition of the distance sales thresholds

A business owes VAT in the country where the consumer uses the product sold.

To prevent businesses to register for VAT purposes in multiple countries, a threshold for distance sales (sales to consumers in other EU countries) applies in the current VAT system. If the value of the sales in a country stays below the threshold applicable to that country, the business may remit VAT in the country from which the goods are shipped.

Effective 1 July 2021, the threshold for distance sales will be abolished. On account of the abolition of the threshold, the business will owe VAT in the EU Member State where the products or digital services sold are used.

The elimination of the VAT exemption for small consignments

The exemption for importation of small consignments will be eliminated effective 1 July 2021. This means that, effective 1 July, VAT will always be owed on the importation of low value goods by consumers as well.

Platform liability

Under certain circumstances, digital platforms that offer businesses the possibility of selling products to consumers via their website will be liable for the payment of VAT on sales by affiliated businesses.

As a result, the digital platform will charge the consumer for the VAT on the sale and the business will deliver the products directly to the consumer.

One Stop Shop return

Effective 1 July 2021, in almost all cases a business will owe VAT in the EU Member State where the consumer receives the products purchased. To prevent businesses from having to register for VAT purposes in every country to which they provide distance sales, from 1 July 2021 onwards it will be possible to submit a single One Stop Shop (OSS) return.

With the OSS return, entrepreneurs declare the VAT that they owe in different countries in the EU country of residence. The country of residence then remits the VAT received to the Member States entitled to it.

Import scheme (Import One Stop Shop)

In addition to the One Stop Shop, a separate scheme will be introduced for imported goods with an intrinsic value of no more than EUR 150: the import scheme. The import scheme provides for a separate return via the Import One Stop Shop (I-OSS)

If the import scheme is used, the importation of goods in the EU is exempt from VAT. VAT is only owed on the delivery to the consumer in the country where the goods will be used/will ultimately arrive.

Arrangement for postal operators and couriers

Businesses are under no obligation to use the import scheme. If the import scheme is not used, VAT will be owed at the time of...