The new e-commerce VAT rules will enter into force in Europe on 1 July 2021 and aim to regulate online sales of goods and services from businesses to consumers (B2C) within the European Union.
Currently, EU taxation of online sales is based on a threshold system: if a business exceeds a certain sales threshold in a particular EU country, it must register for and pay VAT in that country. Under the new rules, however, EU VAT returns will shift to the One-Stop Shop mechanism. The threshold system will be withdrawn and businesses will pay VAT in the consumer’s country, regardless of their sales volume.
These changes will affect all companies that sell products online in other EU countries, digital platforms or marketplaces, postal operators, courier and transport companies, and of course EU consumers. Although the latter will not have to take any direct action or change their consumer habits, the new rules will provide greater security and transparency in terms of the taxation applicable to their online purchases.
Bové Montero organised a new webinar in collaboration with the German Chamber of Commerce for Spain (AHK) to explain not only the major changes in VAT for e-commerce but also the new “rules of the game” that will have repercussion for online business. Andreu Bové (Partner) and Ludmila Frangu (Tax Manager) led this session.
Afterwards, the attendees took part in a virtual networking session where they could share their thoughts and impressions and get to know each other better.
To watch the webinar, please cick here