The Council of the EU in July 2020 initiated a procedure concerning the European Commission’s proposal to postpone implementation of an e-commerce value added tax (VAT) package to 1 July 2021.
This was originally scheduled to be introduced on 1 January 2021, but the European Commission proposed a six-month postponement due to implementation delays encountered by tax authorities and businesses as a result of the coronavirus (COVID-19) pandemic.
While the implementation postponement to 1 July 2021 has been confirmed, the Netherlands and Germany have suggested that the European Commission evaluate a further extension beyond 1 July 2021.
The Dutch government issued its national legislative proposal last week—the explanatory notes indicate that the earliest implementation date to which the Dutch officials can commit is 1 January 2022. Other EU Member States (including Austria, Bulgaria, France, and Malta) seem to prefer 1 July 2021 as the final implementation date.
Read a July 2020 report prepared by the KPMG member firm in the Netherlands
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.