EU makes marketplaces liable for VAT from 2021

7 January 2019

During December 2018, the European Commission proposed new rules which could make online marketplaces responsible for the reporting and payment of VAT on certain Business to Consumer cross-border sales made by sellers on their websites.

If accepted, from January 2021 online marketplaces will be considered as the supplier of the goods for VAT purposes. This is applicable where goods are imported by a merchant into one EU country and then moved to another EU country via the online marketplace for an onward sale at a value of less than €150 to a consumer.

It is hoped that this will help to prevent VAT fraud which is rife in this area and if accepted could simplify the VAT compliance requirements for small e-commerce merchants.

LATEST NEWS

Cyprus extends VAT rate cuts on essential goods

The Cypriot government has further extended the temporary reduction on the 5% and 19% VAT rates applied to certain essential goods until 30 June 2024. The VAT...

SEE MORE
VAT news
LATEST NEWS

Lithuania considers a standard VAT rate increase

Lithuania is currently considering whether to increase its standard VAT rate by 1% from 21% to 22%. This is being proposed to help meet additional military...

SEE MORE
VAT news
LATEST NEWS

Brazil to introduce indirect taxes on digital service...

From 2026, Brazil will introduce two new indirect taxes that will replace its old tax system. These two new taxes will work in a similar way to VAT and are...

SEE MORE
VAT news

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.