As of 1st July 2021 (previously 1 January 2021) , VAT rules applicable to B2C Distance Selling and more generally to BtoC E-commerce will be substantially amended. The package on VAT rules for E-commerce was adopted on December 2017 by the Council of the European Union and aims to:
All EU and non-EU businesses selling goods and services online to European consumers will be affected by the VAT reform, regardless of the sales channel they use:
Drop-shipping players, who have so far been relatively unconcerned, will be particularly impacted by the changes as of 1st July 2021 (previously 1st January 2021).
The reform introduces 3 optional special schemes (OSS-EU, OSS-HUE and iOSS) which will allow companies to centralize their VAT reporting in a single EU country, via a new VAT number specific to each OSS.
Please note: the conditions of access to OSS are strictly regulated and specific to each scheme. In many cases it will not be possible to avoid a traditional VAT return. Consequently, a company may have several VAT returns to file in the same country, using several VAT numbers for the same country.
In addition, due to the abolition of the exemption from customs declaration on importation into the EU for consignments worth less than 22 euros, drop-shipping players must now review their procurement process from outside the EU.
The new rules will come into force from 1st January 2021 in all the EU Member States.
This means that sellers only have a few months left to determine where and how to declare each type of sale.
In fact, it will now be necessary to distinguish sales according to:
Thanks to its dedicated service "VAT AUDIT E-COMMERCE 2021", ASD Group helps you to determine what your VAT obligations will be as of 1st July 2021 (previously 1st January 2021).
In addition, in order to benefit from the special schemes from 1st January 2021, it will be necessary to obtain the VAT numbers specific to OSS’s beforehand.
ASD Group can handle the necessary steps for you to obtain the VAT numbers specific to OSS’s.
You will also have to adapt your IT tool to be able to comply with the new OSS VAT return procedures.
As of 1st July 2021 (previously 1st January 2021), all goods WITHOUT EXCEPTIONS will require a customs declaration at the time of import into the EU.
However, imported goods with a value of less than €150 will be eligible for exemption from import VAT, provided that sales are declared via IOSS and that the seller’s iOSS VAT number appears in the import declaration.
Assist you to adapt to the new rules: