Since July 1, 2021, the new tax reform will be implemented in the 27 EU countries. Although the INTERNAL revenue Service systems of the EU are still trying to adjust to the requirements of the new tax reform, so far there is no clear message from the EU that the new tax reform will continue to be delayed. Amb will continue to interpret the content of the tax reform.

Amber：Goods are shipped from stock outside the EU for distribution to individual buyers, regardless of where the seller is registered (eu seller or non-EU seller), The abolition of VAT exemptions for freight goods worth less than 22 euros. If the seller changes to a third-party online sales platform, the online sales platform will deduct and pay the VAT (duty-free in customs clearance) for the cargo value less than 150 euros. Goods with a freight value of more than 150 euros will pay customs duty and import VAT in the customs clearance process, and the online sales platform will not withhold or pay.

tip：Shipments worth more than 150 euros will also be charged according to the goods' customs code.

Amber：Goods are stored within the EU for distribution to other EU individual buyers, the remote sales threshold in the EU27 Unified adjustment to 10000 euros, It is applicable throughout the EU, but does not apply to sales by EU companies in eu stock countries other than their domicile, nor to sales on behalf of online sales platforms (Amazon, eBay, AliExpress, etc.) where VAT is collected and paid. For the convenience of understanding, we summarize the following table:

tip：The remote sales threshold does not apply to sellers (whether EU sellers or non-EU sellers) of stock shipped outside the EU for distribution to individuals in the EU.

Amber：After 1 July 2021, the EU will launch an optional VAT filing process called the Union One Stop Shop, or UNIon-OSS. With this simplified declaration procedure, EU sellers (those whose company is registered in the EU) and non-EU sellers who set up their own websites can claim VAT uniformly in their home country/host country for their remote sales to the EU27. For easy understanding, we summarize as follows:

tip：Eu-oss does not apply when stocks are shipped outside the EU for distribution to individual sellers in the EU (whether EU sellers or non-EU sellers).

Amber：Based on information gathered from our German professional accountants, UNION-OSS can apply in any country where the stock is located, and can only report B2C transactions in the country where the OSS number was issued, as well as cross-border B2C transactions. All other internal B2C and B2B transactions are reported in the host country (country of shipment) of the warehouse.

Amber：The B2C sales withheld by the sales platform and all its B2B transactions are declared in the VAT of the country where the inventory is located (the country of shipment). The tax rate of withholding sales is 0, and B2B transactions shall be declared according to the shipping country tax rate (except for France, Italy and Spain where reverse tax is applicable).

Amber：Sellers in the following situations are obliged to register for VAT

--Eu sellers or non-EU sellers (regardless of where the seller is registered) and the country where the stock is stored (the country of shipment) will need to register the VAT number.

--Eu sellers (from where the company is registered to the rest of the EU) and non-EU sellers (self-built website, stock in the EU shipped to the rest of the EU) who are not registered with UNION-OSS and whose annual sales to the destination country exceed 10000 euros are required to register a VAT number in the destination country.

Amber：We can use the following chart to illustrate the relationship among the three aspects of the EU tax reform:

Amber：After the new eu tax reform, online sales platforms will not withhold VAT in the following situations:

1. Sellers in the EU (including from the company's domicile/non-domicile to the rest of the EU);           
   
2. Non-eu seller (self-built website, inventory in EU shipped to other EU countries);
3. B2B sales of all stock shipments within the EU;
4. Goods with a value of more than 150 euros shipped in stock outside the EU.