EU: Details about e-commerce VAT package as from 1 of January 2021

The content of the VAT returns for suppliers or intermediaries subject to the new 2021 EU e-commerce rules was published together with instructions for the EU Member States

On 1 January 2021 the new EU e-commerce VAT package will come in force with the aim to ensure complete and correct taxation in the destination state.

The burden will be put on suppliers of services / goods towards EU consumers (intra-community distance sales of goods or distance sales of goods imported from third countries) and electronic interfaces (such as marketplaces, platforms, portals or other similar means) intermediating supplies.

The new EU Regulation applying from 2021 sets the content of the new VAT returns for the taxpayers / intermediaries subject to the new EU e-commerce rules and a common framework on the exchange of information between EU Member States. 

Out of the aspects clarified by the new EU Regulation, following is of importance:

  • The content and format of the VAT returns for the suppliers / intermediaries subject to the new EU e-commerce rules is regulated.
  • EU Member States must develop electronic interfaces enabling the submission of VAT returns via an electronic file transfer and allowing saving and amending any information in the VAT returns before submitting the statements;
  • EU Member States of identification must transmit data to the other Member States as regards the taxable persons / intermediaries subject to the new EU e-commerce rules. The EU Regulation contains the common electronic messages to be sent between Member States.

Complying with the new e-commerce rules will take time and effort for both taxpayers and authorities and preparations should start as soon as possible.

For further information please see the attached link or contact the following person:

For further details please contact Andreea Dereli, andreea.d.dereli@ch.pwc.com

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