From 1 July 2021, the e-commerce VAT package will change the VAT treatment of certain B2C transactions, in particular by introducing two optional schemes:
- The Union and non-Union regime for the treatment of intra-Community distance selling, cross-border supply of services;
- The import regime for the treatment of distance sales of low-value imported goods.
The main purpose of opting for one of these schemes is to centralise all processing and reporting of these transactions through a one-stop shop in a single Member State of registration.
In this respect, the European Commission has provided in a note published on 9 June 2021 details of the items subject to automatic electronic exchange of information between Member States.
If you would like further explanation, please contact our experts.
Source: European Commission (pdf)
