As the implementation date of the European Union’s e-commerce VAT package is fast approaching on 1 July 2021, it is opportune to consider how this may impact on cross border e-commerce transactions entered into by your business.
The purpose of these changes and modernisation of the EU VAT system is that businesses should benefit from a substantial reduction in cross-border VAT compliance costs which will facilitate greater international trade.
The changes contained in the package will have a significant impact for any business which is selling goods and/or services to consumers across the EU.
The changes also affect businesses operating electronic interfaces such as online marketplaces or platforms facilitating such sales where the value of goods is below €150.
