On July 1, 2021, the 27 EU Member States were required to implement the second phase of the EU E-commerce package, under Council Directive 2006/112/EC, as amended (the “EU Value Added Tax (VAT) Directive”) and related EU regulations. The implementation date for the first phase was January 1, 2019.
The purpose of the EU e-commerce package is to simplify cross-border trade in the EU, reduce the administrative costs of VAT compliance, enable EU businesses to compete on an equal footing with non-EU businesses and ensure that VAT is correctly charged under the destination principle.
Source Bloomberg
