EU E-Commerce VAT reform has been postponed until 1 July 2021,安博国际财税（深圳）有限公司

EU E-Commerce VAT reform has been postponed until 1 July 2021

Author：安博国际财税（深圳）有限公司 Click： Time：2020-05-27 09:25:13

I believe that all of you are concerned about the pending tax reform process in the EU, especially those sellers who do business frequently in the UK and other EU countries, may take a break from the following news.

Under the continuous fermentation of COVID-21, the long-simmering 2021 VAT reform of EU e-commerce will also be affected. On May 8, 2020, the European Commission proposed to delay the implementation date of the new rules by six months. Once approved by the European Council, the new rules will be pushed back from the original date of January 1, 2021, to July 1, 2021

new rules will include the following main measures

1. Abolish the threshold for remote sales (a new Europe-wide threshold of €10,000 for micro-businesses).

2. Launching one-stop (One-stop-shop or OSS) registration and declaration service.

3. Abolish import VAT exemption for small goods (less than 22 euros).

4. Launching import-one-stop-shop or IOSS registration and declaration service.

5. For some sales on the platform, the platform shall be responsible for collecting and paying VAT.

If you are an online sales business, an e-commerce platform that facilitates the sale of goods online, or a customs agent or logistics service provider, then the new VAT rules could have a profound impact on your business and compliance. Transitions from the current system to the new system, such as changes to business models, ERP systems, and VAT processes, all take time. So the delay gives sellers more time to work out their business and tax plans so they can adapt to the new regulations more quickly.

Compliance in the cross-border e-commerce industry is an inevitable trend. In the next few months, we will introduce to you in detail the main measures of the new regulation, its possible impact on you and the countermeasures. Please pay attention.

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EU E-Commerce VAT reform has been postponed until 1 July 2021

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