11 June 2021


From 1 July 2021, the new VAT e-commerce package will come into force. The VAT rules on cross-border business-to-consumer (B2C) e-commerce will change, alongside the customs formalities and processes for importation and exportation of low value consignments. In particular, the EU abolished its VAT de minimis threshold of 22 euro for VAT, meaning that as of 1 July, VAT will apply to all goods entering the EU, regardless of their value. This is to ensure a level playing field for EU businesses. A new form of customs declaration with a super-reduced dataset was created as a simplification, available for low value consignments of an intrinsic value below 150 euro, whereas for certain goods with prohibitions and restrictions a full declaration will still be required. An electronic portal called the ‘Import One Stop Shop’ (IOSS) was introduced to facilitate and simplify the declaration and payment of VAT for online sales of goods imported in the EU with a value not exceeding 150 euro.

Additionally, so-called special arrangements were introduced to manage sales done by sellers or platforms that have not registered in the IOSS. Under that scheme, the VAT due upon import will be collected from the buyer upon delivery of the parcel in the country of destination. The collected VAT by operators will be paid on a monthly basis to the relevant authorities.

More information on the new VAT e-commerce rules in the EU, which are coming into force on 1 July, you will find on the official Commission’s e-commerce campaign website.