UPDATE: EU makes marketplaces liable for VAT from 2021

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EU member states recently agreed to make online marketplaces responsible for charging and collecting VAT for their non-EU sellers in a bid to reduce VAT fraud.

From 1 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 an online marketplace for onward sale at a value of less than €150 to consumers.

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