EU adopts new VAT rules for e-commerce

On 5^th December 2017, the Council of the European Union adopted new VAT rules, designed to simplify e-commerce. According to these rules:

Simplification measures will apply to all intra-EU supplies of services from 2019 onwards. Taxable persons not exceeding an annual total value of €10,000 in connection with such services may continue to apply the VAT rules of their home country.

The one-stop-shop scheme will be extended to distance selling of goods (both intra-EU and from third countries) from 2021. At the same time, the small consignment VAT exemption will be eliminated. Taxable persons not exceeding an annual total value of €10,000 in connection with such supplies may continue to apply general VAT rules.

Author: Bettina Cassegrain, HLB Technical Director and Global Assurance Leader