16 March 2021 | 2pm –3pm GMT , 3pm – 4pm CET (Central Europe)

Overseas e-Commerce suppliers of electronically supplied services (“ESS”) and goods to UK customers, and online marketplaces (“OMP”) facilitating the sale of goods to UK customers need to consider their UK VAT registration and compliance requirements from 1 January 2021. There have been some key changes including the abolition of the  Low Value Consignment Relief, which previously relieved import VAT on consignments of goods valued at £15 or less. 

The EU VAT e-commerce package has been designed to facilitate cross-border trade, combat VAT fraud and ensure fair competition for EU businesses. To this end it foresees the abolishment of the current thresholds and a single EU VAT registration as regards the B2C cross border e-commerce activities. Special procedures will be introduced as regards online marketplaces/ platforms facilitating these types of sales.  The original implementation date of 1 January 2021 has been delayed to 1 July 2021 due to COVID-19 . But the question remains of all EU Member States will they be ready by that date? 

On November 30, 2020, in its Fall Economic Statement, the Canadian federal government proposed several  changes to the Goods and Services Tax/Harmonized Sales Tax (GST/HST) regime to address the  digitization of the global economy. The proposals are intended to ensure that the GST/HST applies to  all goods and services consumed in Canada regardless of how they are supplied, or who supplies them.  As a result foreign-based digital businesses (that are not required to register under the current GST/HST rules) that supply digital  products and services to consumers in Canada will generally be required to register and collect GST.HST under a new simplified GST/HST regime starting from 1 July 2021. 

New rules also apply to online marketplaces that facilitate the sale of goods located in Canada and online platforms that facilitate the provision of short-term accommodation.  In addition, there have been developments with respect to provincial sales taxes including new registration requirements for out of province businesses selling into British Columbia that come into effect on April 1, 2021. 

In South America more territories are introducing digital taxes and taxing electronically supplied services in novel ways. In the US, the implications of the Wayfair v South Dakota Supreme Court ruling for distance sellers, e-commerce and service providers who generate income in the United States continues to evolve across the States.  These changes are dynamic and impacting a variety of players within digital supply chains in different ways.  

The new rules are complex and require detailed consideration. During this webcast  our indirect tax specialists from the UK, EU, Canada and US will highlight the key changes for different e-commerce operators.

We will discuss practical  issues and solutions we are seeing. We will also have a live, Q&A session so we can answer as many of your questions as time permits. If you would like to submit a question in advance, please contact christine.omalley@pwc.com. 

You can register for this session here. A recording will be made available post-event. 

I look forward to seeing you soon.

Image source: http://unsplash.com