Frequently asked questions

What is changed to the European Union’s VAT rules per July 1?

The new rules of the European Union’s VAT e-commerce package will contain changes for both shipping goods into and within the EU. 

For goods shipping into the European Union, the VAT exemption on imported products up to €22 will be abolished. This means VAT will be applicable on all goods shipped into the European Union from the first cent. 

For goods shipping within the EU, the distance sales after which a business needs to register and pay VAT (in the country of the addressee) is lowered and unified. This means thresholds that currently vary between €35.000 or €100.000 (depending on member state) are replaced by one threshold of €10.000 representing the total turnover in all member states. In both cases applying local VAT rates upon sale is the new standard for shipping goods into and within the EU. 

When a product is sold by a seller based outside of the European Union to a buyer in the European Union via an electronic interface (marketplace, platform, etc.), the EU tax authorities consider the electronic interface the seller to the consumer. Electronic interfaces will be liable to register and pay VAT when facilitating sales of distance goods into the EU. 

The One Stop Shop (OSS) scheme will be introduced to facilitate a simple VAT administration.

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