Resources

Marketplace eGuide: Practical implications of EU e-commerce VAT rules

by Vertex

As of July 1st, 2021 cross-border e-commerce VAT rules have been modernised in the EU. The new legislation introduces substantial new VAT liabilities and compliance requirements for both online merchants and marketplaces/multi-seller platforms facilitating sales to EU private consumers. The legislation puts an end to governments missing out on indirect tax revenue from distance sellers and creates a VAT level playing field for businesses. However, it brings with it considerable complexities for marketplaces. To avoid being non-compliant, these marketplaces must ensure a series of additional measures. This guide aims to look at the new VAT rules for marketplaces and the practical implications they can have on a marketplace business.

The legislation covers 6 key areas of change, all of which are directly relevant to marketplaces. Key areas of change for marketplaces:

  • All remote sales to consumers are taxable for VAT in the country of destination where
    the consumer resides
  • Marketplaces are deemed suppliers for VAT purposes in specific scenarios and must
    charge VAT as applicable
  • ┬áThe VAT exemption on imports of low value goods no longer applies
  • A pan-EU sales threshold for VAT replaces individual per-country thresholds
  • The launch of Import One Stop Shop (IOSS) and One Stop Shop (OSS) schemes, reducing
    the need for multi-country registration and reporting
  • Additional record-keeping regulations for marketplaces where they are
Share
Was this article helpful?

Related Resources

2024 FX Navigator
whitepapers | Corporate Finance

2024 FX Navigator

6d
Strategic workforce planning: what it is and why it matters
eBook | Corporate Finance

Strategic workforce planning: what it is and why it matters

1w
Rolling Forecasts: How to achieve business agility with dynamic planning
eBook | Corporate Finance

Rolling Forecasts: How to achieve business agility with dynamic planning

2w

Other resources from Vertex

Implications of EU eCommerce VAT rules for Marketplaces and Sellers
whitepapers | Accounting Firms

Implications of EU eCommerce VAT rules for Marketplaces and Sellers

11m
VAT Compliance: Leveraging technology to overcome tax reporting challenges
Corporate Tax

VAT Compliance: Leveraging technology to overcome tax reporting challenges

2y
Global digital services: a tax compliance guide
Regulation

Global digital services: a tax compliance guide

2y
US sales tax for digital service sales: a tax management guide
Regulation

US sales tax for digital service sales: a tax management guide

2y
Challenges of registering, filing, and settling tax globally
Regulation

Challenges of registering, filing, and settling tax globally

2y
Roundtable - utilising end of life technology for a positive transition and embracing opportunities for change

Roundtable - utilising end of life technology for a positive transition and...

3y