Ecommerce VAT reforms 2021

In 2021 the EU and UK are overhauling 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 & UK ecommerce VAT reforms 2021

In 2021 the EU and UK are overhauling 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) will introduce sweeping reforms to the VAT obligations for B2C ecommerce sellers and marketplaces.
These will 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 IMPORTER SOLUTION

IOSS in three easy steps with Avalara

As part of the EU's VAT reforms from 1 July 2021, businesses will be able to sell into all 27 EU member states with just one VAT return. 
Get your business ready for the EU's Import One-Stop Shop (IOSS) with a complete, end-to-end solution from Avalara.

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

Ecommerce VAT news and resources