2021 EU & UK ecommerce VAT reforms

2021 EU & UK ecommerce VAT reforms

In 2021 the EU and UK are separately overhauling their ecommerce VAT regimes to simplify compliance obligations and reduce VAT fraud. These meaures also seek to make online marketplaces liable for the VAT obligations on many transactions of their third-party sellers.

Whether you are a seller or marketplace you need to understand these fundamental reforms to your obligations to avoid extra VAT costs and a bad customer experience. Learn how Avalara can help you automate and thrive under the new regimes.

In 2021, the EU and UK will separately overhaul their ecommerce VAT regimes to simplify compliance obligations and reduce VAT fraud. These measures also seek to make online marketplaces liable for the VAT obligations on many transactions of their third-party sellers. 

Whether you are a seller or marketplace you will need to understand this fundamental reforms to your obligations to avoid extra tax costs and a bad customer experience. Learn how Avalara can help you understand and thrive in the new regimes.

Are you liable for UK 'Marketplace VAT' in 2021?

Does your business facilitate third-party sales online? Under HMRC's 2021 VAT reforms you could be liable for VAT as a marketplace operator.

If you control the terms of the sale, authorise the charge to the customer, or take care of delivery you may be classified as a marketplace. 

Since January 1, 2021 - the UK's HMRC has made marketplace operators liable for the VAT on ecommerce sales when certain conditions are met.

Play the video animation for an explanation.

UK marketplace VAT & customs changes

In January 2021, online marketplaces trading in 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. 

Find out more how this affects your business in the UK.

EU 2021 ecommerce VAT package

On 1 July 2021, the 27 member states of the European Union (EU) will introduce sweeping reforms to the VAT obligations for B2C ecommerce sellers and marketplaces.

This will include: the OSS single EU VAT return; withdrawal of the €22 import VAT exemption; and marketplace deemed supplier obligations.

Ecommerce VAT news

Online event

How to expand into new international markets

In the wake of the pandemic cross-border ecommerce is growing at two times the rate of domestic and set to break the $1 trillion mark in 2022. (Source: Research & Markets).

Seize the moment and plan for global growth at our next free summit.

6 MAY 2021
10AM BST
11AM CEST

Spotlight guide

Guide to the EU 2021 ecommerce VAT reforms

To accompany our webinar the "Ecommerce EU VAT reboot" guide - covers the three 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

Spotlight webinar: watch on demand

2021 UK & EU ecommerce VAT overhaul

Learn how the new ecommerce VAT obligations for sellers and marketplaces in the UK & EU will impact your business.

  • Selling and shipping goods from outside the UK to EU consumers
  • Listing your goods on major marketplaces in the UK or EU, including fulfilment
  • Acting as a marketplace for sales to EU or UK buyers

Spotlight guide

2021 UK ecommerce VAT overhaul

Who is this for? UK sellers and international business selling into the UK
What is is about? This guide covers everything you need to know and prepare for the UK’s HMRC overhaul to the the rules on VAT for ecommerce which began on1 January 2021

Explore more - 2021 ecommerce VAT reforms - news and resources

Explore all of our news, guides and webinars covering the 2021 UK and EU ecommerce VAT reforms.