VAT e-Commerce

With EU’s implementation of the OSS portal, you enjoy simplicity and variety All-in-One

VAT rules on cross-border business-to-consumer (B2C) e-commerce activities will change as of 1 July 2021, because of the need to simplify cross-border online sales, to address challenges arising from VAT regimes for distance sales of goods and for the importation of low value consignments.

What are the key changes?

• Up to 95% reduction in red tape with the new OSS (One Stop Shop): MOSS (Mini One Stop Shop) concerning suppliers of TBE (telecommunications, broadcasting and electronically supplied) services will be extended to cover online sellers and marketplaces/platforms. These parties can register with the OSS of one EU Member State covering the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU. Click here to register with Cyprus’ OSS portal.

• Thresholds: existing thresholds will be abolished and replaced by a new EU-wide threshold of €10,000.

• “deemed supplier” concept: according which online marketplaces/platforms facilitating supplies of goods will be deemed for VAT purposes to have received and supplied the goods themselves.

• Record keeping: new requirements introduced for deemed and non-deemed suppliers.

• Small consignments: the previous VAT exemption at importation of small consignments of ≤€22 will be removed. All goods imported in the EU will be subjected to VAT.

• IOSS (Import One Stop Shop): the creation of which will simplify the declaration and payment of VAT in distance sales of low goods imported from third countries.

• Consignments < €150: Special, simplified arrangements will be introduced for distance sales of imported goods in low value consignments.

Who do the new VAT rules on e-commerce concern?

Everyone in the e-commerce supply chain – this includes:

• Online sellers and marketplaces/platforms both inside and outside the EU;

• Postal operators and couriers (including freight forwarders, logistic service providers and customs agents);

• Customs and Tax administrations;

• Consumers.

Which transactions are affected by the new VAT rules on e-commerce?

• Distance sales of goods within the EU carried out by suppliers or deemed suppliers;

• Domestic sales of goods by deemed suppliers;

• Supplies of services by EU and non-EU sellers to consumers in the EU;

• Distance sales of goods imported from third territories or third countries carried out by suppliers and deemed suppliers, except for goods subject to excise duties.

Entrust ServPRO with your company’s tax requirements and enjoy your coffee, on us!

Celebrating our 10 Year Anniversary!

We are celebrating our 10 Year Anniversary with a redesigned Company Profile, showcasing our achievements through our incredible journey, a brand new YouTube Channel with our Founder’s Message and an introduction into our team videos, as well as with a new webpage coming soon!

Thank you for being part of our journey.