2021 ecommerce EU VAT reboot
On 1 July 2021, the member states of the European Union (EU) introduced sweeping reforms to the VAT obligations of B2C ecommerce
sellers and marketplaces.
The key reform means that many ecommerce sellers will now be able to report all their pan-EU sales on a single VAT return in their home country instead of having multiple VAT registrations across the EU.
This guide covers the following areas of the 2021 VAT reforms:
- A single EU VAT return for ecommerce – OSS (One-Stop-Shop)
- Withdrawing the low value consignment stock loophole and introducing the IOSS import scheme
- Marketplaces becoming the deemed supplier and VAT collector on certain seller transactions
These reforms are aimed at helping eliminate an estimated €7 billion in annual VAT fraud.