January 6, 2021

EU VAT Reform July 1, 2021

On July 1, 2021 the European Union is introducing changes to the VAT rules for ecommerce sellers. You need to pay close attention if you are a U.S. or Canadian company, selling goods to private consumers in: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and/or Sweden.

Three VAT rule changes in July:

1. Launch of the One-Stop-Shop (OSS) EU VAT return.
2. All sales regardless of value are subject to Import VAT. Import One-Stop-Shop (IOSS) replaces all previous import returns including low-value goods.
3. Certain marketplaces are becoming liable for supplier VAT.

The upside is some sellers will be able to report all their EU sales on one single VAT return; instead of VAT registrations in multiple EU countries. More details about OSS will be covered in EuroVAT’s next newsletter. Please stay tuned…or contact us today at vat@eurovat.com with questions about changes in your EU VAT management.


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