VATupdate
VAT

Share this post on

VAT Directive adopted on E-Commerce

Council Directive (EU) 2019/1995 of 21 November 2019 amending Directive 2006/112/EC as regards provisions relating to distance sales of goods and certain domestic supplies of goods

Source Eur Lex

 

Editorial comments:

  • This Council Directive 2019/1995 to be implemened by the Member States by January 1, 2021 deals with Distance Sales of goods. It needs to be read together with Council Directive 2017/2455.
  • Council Directive 2017/2455 regulates that the person who facilitates a supply from a non-EU established entity to a non-taxable person is deemed to have received and supplied the goods himself. This middleman is often referred to as the marketplace, platform or portal. This means that a single supply is split into two supplies. The new article 36b regulates that the transport needs to be ascribed to the supply made to the marketplace.
  • The chargeable event of the supply made to the marketplace and from the marketplace to the non-taxable person is at the time when the payment has been accepted
  • The supply from the supplier selling goods through a marketplace is exempt from VAT, while that supplier is granted the right to deduct the input VAT which he paid in respect of the purchase or import of the goods supplied. For that purpose, the supplier should always be registered in the Member State where he acquired or imported those goods.

Sponsors:

VAT news

Advertisements:

  • vatcomsult