It was scheduled to change the VAT legislation in the field of E-commerce per January 1, 2021. The change mainly affects shipments from outside the EU (especially China), whereby VAT will become due on all these sales. This is not yet the case: on the one hand, as there is an exemption for small parcels (parcels till € 22), and on the other hand, because under the current VAT legislation these sales fall outside the scope of EU VAT. The effect of the new rules will be that sales by non-EU webshops will be taxed with VAT. Also, a so-called ‘platform fiction’ will be introduced, with the result that platforms such as Amazon will be liable for VAT in relation to specific transactions.
‘One Stop Shop’ regime
In addition, it will be possible to pay VAT on E-commerce sales in one ‘EU VAT return’ (the so-called ‘One Stop Shop’ regime), with the benefit that webshops no longer need to VAT register in multiple EU Member states to pay local VAT via local VAT returns. This means a considerable simplification (and reduction of costs) for Dutch and EU based webshops.
Due to the corona crisis, EU member states are unable to implement all measures in time. Therefore, the EU has decided to postpone the introduction to July 1, 2021. In case you want know what this new legislation means for your business, please contact us via email@example.com.