VAT eCommerce Rules – 1 July 2021
Updated April 2021
Significant changes have been made to the Value-Added Tax (VAT) Directive to simplify VAT obligations as regards eCommerce activities.
Changes will enter into force from 1 July 2021.
These amendments will change the way VAT operates for cross-border business-to-consumer (B2C) e-commerce activities in the European Union (EU).
We recommend businesses affected by these changes to prepare for their impact as soon as possible.
The main changes that will enter into force from 1 July 2021 are as follows:
- Extension of the VAT Mini One Stop Shop (MOSS) to a One Stop Shop (OSS).
Currently VAT MOSS applies only to the supply of telecommunications, broadcasting and electronic (TBE) services. However, from 01 July 2021, the scope of VAT Mini One Stop Shop (VAT MOSS) will be improved and extended to allow the reporting of more supplies, turning it into a VAT One Stop Shop (OSS).
- The treatment of Online Marketplaces and Platforms as deemed suppliers for certain transactions.
Digital marketplaces – such as Amazon or EBay – will be deemed as supplier for VAT purposes for the supply of the goods facilitated on their platform. As such, the online platform will be responsible for accounting for the VAT on those supplies.
- Introduction of a new Import One Stop Shop (IOSS).
The current VAT exemption for goods in small consignments of a value of up to €22 will be abolished with effect from 1 July 2021. From this date, all goods imported into the EU will be subject to VAT, irrespective of their value. The customs duty exemption for goods of up to an intrinsic value of €150 which are imported into the EU will not change. A new Import One Stop Shop (IOSS) will be introduced to simplify the importation of low value goods into the EU.
- Introduction of Special Arrangements for certain imports of goods.
Special arrangements are being introduced for goods in consignments of an intrinsic value not exceeding €150, excluding goods subject to excise duty. These arrangements are designed in particular for postal operators, express carriers or other customs agents in the EU who typically declare low value goods for importation, either as direct or as indirect customs representatives.
Businesses eligible for the Union or non-Union schemes in the OSS or for the IOSS can pre-register from 1 April 2021. A new Tax and Duty Manual was recently published, which outlines the requirements for pre-registration for the OSS and IOSS from 1 April 2021. See further reading below
These changes may have commercial implications which need to be carefully considered. If you have any queries with regard to your own business, get in touch with Jamie O’Hanlon at email@example.com or call us on 0818 303 087.
- Revenue Guidance March 2021: VAT eCommerce – Registration for the One Stop Shop (OSS) and Import One Stop Shop (IOSS) from 1 April2021
"A breath of fresh air. Your firm demonstrated enormous commercial understanding in turning around negotiations with a potential target vendor. I admire your style and ability to drive the deal forward. Many thanks."
"I would like to say I'm very happy with your service, especially the audit team, your staff are always friendly, helpful and a pleasure to deal with."
"Your business approach to clients is very impressive. I have always found that when explaining the types of service on offer, it is always concise and straight forward. The level of trust that clients place in your company and its staff speaks volumes."
"I would like to take this opportunity to say how much we are impressed with your company's professionalism, it has been a pleasure working with you all and we look forward to working with you in the future."
"Avid Partners - Accountants & Business Advisors are an excellent firm of accountants, their quality ethos is outstanding."
"I have dealt with Jamie O' Hanlon, of Avid Partners - Accountants & Business Advisors Chartered Certified Accountants, for a number of years as he is auditor to one of my clients. I have always found him to be professional and responsive in his approach."
"Service is second to none; there is always someone at the end of the phone for any business advice. The staff are very easy to get along with, very approachable and know exactly what they are talking about"
We at Fitzies Bar have worked with Avid Partners - Business & Financial Advisers for over five years. We find that the advice and support offered to us in addition to all of our book-keeping requirements to include payroll, VAT, etc. is invaluable and has helped to contribute to our continued growth especially in these challenging times. I would have no hesitation in recommending Avid Partners.
Jamie and his staff are a pleasure to work with. They respond promptly to any queries we have and are critical to our financial planning and the future needs of our business. I would highly recommend them to anyone interested in accounting services.
We at Stillorgan Cycles have used Jamie and his Team at Avid Partners – Accountants and Business Advisers for over five years. We have found that the retail advice and support offered to us is second to none and has helped to contribute to our continued growth especially in these challenging times. I would have no hesitation in recommending Avid Partners.
I met Avid Partners through a local business networking group. We had been using the same accountants for years and found that in these harsh economic times that we were not getting good enough value or service. We were very impressed by the company's professionalism and enthusiasm and genuine interest in helping us get the most out of our business. As a result we are now clients of Avid Partners and are thrilled with our decision.
After meeting Avid Partners with a view to changing our accountants, we came away with a better deal financially and a feeling that we were in capable hands. We feel that Avid Partners has a personal interest in the welfare of our business. Avid Partners have given us great advice, help and support and respond to our day to day queries with speed and efficiency. We feel it was a great move for us to change to Avid Partners.