The new legislation includes the abolishment of the import VAT exemption for low value consignments, the introduction of a single point of registration to report and remit VAT Also, online platforms and online marketplaces are introduced as persons that become liable for remitting VAT on goods sold on such platforms by third-party vendors, instead of the vendors themselves.
The initial entry into force date was 1 January 2021 and is now postponed to 1 July 2021. On 20 July, the Council of the European Union has formally approved the European Commission’s proposal to postpone the effective date of the 2021 e-commerce VAT package due to the disruption caused by the COVID-19 pandemic.
The postponement will provide tax authorities and taxpayers with much needed preparation time to ensure correct application of the new legislation.
