2021 EU & UK ecommerce VAT reforms

2021 EU & UK ecommerce VAT reforms

The EU (Jul 2021) and UK (Jan 2021) will separately overhaul their ecommerce VAT regimes to simplify compliance obligations and reduce VAT fraud. They will 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 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 in the new regimes.

In 2021, the EU and UK will separately overhaul their ecommerce VAT regimes to simplify compliance obligations and reduce VAT fraud. They will 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.

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.

UK marketplace VAT & customs changes

In January 2021, online marketplaces trading in the UK are set to be hit by a triple tsunami of customs obligations and VAT charges.

These arise from the end of the Brexit transition period, HMRC’s new rules on -imports and cross-border marketplace VAT liabilities. Find out more about how this may affect you.

Essential ecommerce tips

Spotlight webinar: watch on demand

2021 EU VAT for ecommerce - reboot

This webinar provides an overview of the major VAT reforms, and how it will affect sellers and marketplaces’ obligations, based on three major reforms planned for 2021.

  • A single VAT return for ecommerce selling into the EU
  • Closing the import VAT exemption loophole
  • Marketplaces become the deemed seller and VAT collector

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

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.