E-commerce: changes on 1st July 2021

New European e-commerce VAT rules will come into effect on 1 July 2021.

Everyone in the e-commerce supply chain is affected, from online sellers and marketplaces/platforms both inside and outside the EU, to postal operators and couriers, customs and tax administrations, right through to consumers.

All goods imported in the EU will now be subject to VAT:  purchases on non-European e-commerce sites will have to include VAT even when they are less than 22 euros.

The Mini-One-Stop-Shop scheme, which since January 2015 has been applicable only to telecommunications services and the provision of other services by electronic means, will be extended to all services. All taxable persons in the Mini-One-Stop-Shop (non-EU and EU schemes) are being migrated to the respective One-Stop-Shop schemes.

More information and details on the VAT Solutions website.

More information regarding the extension from the Mini-One-Stop-Shop scheme (MOSS) to the One-Stop-Shop one on the Luxembourg indirect taxation portal.

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