In 2021 the EU and UK have overhauled their ecommerce VAT regimes to simplify compliance and reduce VAT fraud.
Whether you are a seller or marketplace, you need to understand your obligations to avoid extra VAT costs and a bad customer experience.
EU 2021 ecommerce VAT package
On 1 July 2021, the 27 member states of the European Union (EU) introduced sweeping reforms to the VAT obligations for B2C ecommerce sellers and marketplaces.
These include: the One-Stop Shop (OSS) single EU VAT return; withdrawal of the €22 import VAT exemption with the introduction of the Import One-Stop Shop (IOSS); and marketplace deemed supplier obligations.
EU 2021 ecommerce VAT package
On 1 July 2021, the 27 member states of the European Union (EU) introduced sweeping reforms to the VAT obligations for B2C ecommerce sellers and marketplaces.
These include: the One-Stop Shop (OSS) single EU VAT return; withdrawal of the €22 import VAT exemption with the introduction of the Import One-Stop Shop (IOSS); and marketplace deemed supplier obligations.
Solution
Avalara's IOSS solution
As part of the EU's VAT reforms, businesses can now sell into all 27 EU member states with just one VAT return.Start taking advantage of the EU's Import One-Stop Shop (IOSS) with a complete, end-to-end solution from Avalara.
In January 2021, online marketplaces trading into the UK, were hit by a triple wave of customs obligations and VAT charges, due to: the end of the Brexit transition period, HMRC's new rules on imports and cross-border marketplace VAT liabilities.
UK marketplace VAT & customs changes
In January 2021, online marketplaces trading into the UK, were hit by a triple wave of customs obligations and VAT charges, due to: the end of the Brexit transition period, HMRC's new rules on imports and cross-border marketplace VAT liabilities.
Information on the 2021 UK VAT reforms
UK VAT reforms overview
Read an overview of the 2021 UK VAT reforms for ecommerce sellers and marketplaces in this article Read time: 20 minutes
