EU: Changes to VAT rules affecting cross-border e-commerce effective 1 July 2021

Reminder that VAT rule changes regarding cross-border e-commerce are effective 1 July 2021.

Reminder that VAT rule changes regarding cross-border e-commerce are effective 1 July 2021

Changes to the value added tax (VAT) rules with regard to cross-border e-commerce are effective 1 July 2021. 

As noted in an EC release (28 June 2021), the changes generally affect online sellers that sell goods to consumers and digital platforms. Consumers importing goods in consignments from non-EU countries for their own needs, as well as other persons carrying out import of goods from third countries for their business activities, will also be affected.

Major changes include:

  • New VAT rules for remote (distance) sales of goods within the EU and the introduction of a concept of “distant sales of imported goods”
  • Repeal of the existing thresholds for intra-EU remote sales of goods (€35,000 / €100,000) and instead a new EU-wide threshold of €10,000 (requiring VAT registration)
  • Introduction of special provisions whereby a business facilitating supplies through the use of an online electronic interface (such as online marketplace, platform or similar means) is deemed for VAT purposes to have received and supplied the goods themselves
  • Repeal of the VAT exemption available for imports of “small consignments” having a value of up to €22 (thus all imports are to be subject to VAT)
  • Expanded scope of the “one stop shop” (OSS) regime and creation of a new special scheme for remote sales of goods imported from third countries—an “import one stop shop” (IOSS)
  • Introduction of simplification measures for remote sales of imported goods in consignments not exceeding €150 if the IOSS system is not used

Measures available Slovakia

The Slovak tax administration published specific subpages on their website dedicated to:

  • OSS special scheme
  • IOSS special scheme
  • Customs clearance of consignments of goods from non-EU countries

A new e-commerce portal was launched for customs clearance of goods in consignments from non-EU countries not exceeding €150, to be used from 1 July 2021.
 

Read a June 2021 report prepared by the KPMG member firm in Slovakia 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained 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.