Indirect Tax Update: New EU VAT rules for e-commerce

Date: 30 June 2021

We would like to remind you that as of tomorrow (1 July 2021) the new EU VAT rules for e-commerce will enter into force. These changes will have a significant impact on e-commerce businesses. In particular they will affect business-to-consumer (B2C) e-commerce sellers and marketplaces.

We would also like to inform you that registrations for both OSS (One Stop Shop) and IOSS (Import One Stop Shop) can be processed via Tax Authorities’ Tax portal. 

Which are the transactions covered by the new changes?

In a nutshell, the following transactions are covered by the new changes:

• Distance sales of goods within the EU carried out by suppliers or deemed suppliers

• Domestic sales of goods by deemed suppliers

• Supplies of services by EU and non-EU sellers to consumers in the EU

• Distance sales of goods imported from third territories or third countries carried out by suppliers and deemed suppliers, except for goods subject to excise duties

How can KPMG assist?

Are you asking yourself where to start and how to structure the implementation of these VAT changes? We have developed a holistic and practical framework to assist organizations with the implementation – addressing the legal and commercial side; data, systems and processes; tax and customs authority procedures; and documentation and controls. We have designed a framework for each of the key stakeholders, being sellers located in the EU, sellers located outside the EU, marketplace operators, postal operators, express carriers and customs agents, and Payment Service Providers.