Postponement of the entry into application of the VAT e-commerce package

18/05/20

The EC has proposed to postpone the entry into application of the VAT e-commerce package by 6 months. These rules will apply as of 1 July 2021 instead of 1 January 2021, giving Member States and businesses more time to prepare for the new VAT e-commerce rules. The decision to postpone will still have to be taken by the ECOFIN Council.

E-commerce VAT Package

The new e-commerce VAT rules serve to tax online purchases of goods with VAT in the Member State of the online buyer. In the new system also small online purchases from non-EU countries are subject to VAT. Under the new rules in many cases the online platforms will be used to collect VAT on online purchases of goods.

Changing from MOSS to OSS

An important part of the EU VAT package for e-commerce will also be an extension of the MOSS (Mini one-stop shop system), which will become the One-Stop-Shop (OSS). Under the current rules, Member States are obligated to provide taxable persons and their intermediaries who will use One Stop Shop by 1 January 2021 access to the declaration and payment system by 1 October 2020. According to the proposal, Member States shall allow taxable persons and intermediaries acting on their behalf to submit the information required as from 1 April 2021.