- From July 1, 2021, EU VAT rules on cross border supply of low value goods change with new reporting obligations for digital platforms
- Digital platforms will be liable for collection and remittance of VAT on sales made via their platform
- VAT due will be based on place of consumption of consumer
- VAT e-commerce package aims to facilitate cross-border trade, combat VAT fraud, and ensure fair competition
- European Commission estimates member states will gain €7 billion annually through increased VAT revenues
- New rules remove €22 import exemption threshold and introduce new low value goods threshold of EUR150
- EU VAT rules on low value goods mirror global implementations in Norway, Australia, New Zealand, and UK
- Changes are more complex due to involvement of 27 EU member states
- Implications for digital platforms, or ‘electronic interface’, are assessed
- Definition of digital platform varies between jurisdictions, with EU providing a broad definition as ‘electronic interface’
Source: vertexinc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
