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EU: Postponement of e-commerce VAT to 1 July 2021

EU: Postponement of e-commerce VAT to 1 July 2021

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.

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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 

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