Since 1 July 2021, a VAT reform called the “E-Commerce VAT Package” has entered into force, the main measures of which are the following:
- Redefinition of the concept of “Distance Selling”;
- Abolition of local distance selling thresholds;
- Abolition of the exemption for imported parcels with a value of less than 22 euros;
- Introduction of 3 optional special schemes and corresponding electronic portals (OSS);
- Introduction of VAT accountability of marketplaces.
Most Member States have transposed the EU rules into their local rules. However, three Member States, namely Denmark, Croatia and Lithuania, have not yet explicitly transposed the new legislation.
In this context, the European Commission has opened an infringement procedure against these three Member States, which have two months to provide the requested documentation.
For more information on the VAT rules for distance selling and e-commerce, contact our experts.
Source: European Commission
