VATLive > Blog > Europe > EU ecommerce package go-head; German and Dutch concerns

EU E-commerce package go-head July 2021; German and Dutch concerns

  • Jul 24, 2020 | Richard Asquith

The final approval from the Council of the European Union has been granted to the delay to the EU VAT ecommerce package until 1 July 2021.

This came despite the Netherlands and Germans requesting a further delay until 1 January 2022. The postal service agents had also requested further time for preparations. However, Austria, Bulgaria, France and Malta blocked this further delay. They were anxious, despite the health and economic crisis, to implement the measures as soon as possible  to protect tax revenunes and ensure local ecommerce businesses should be given a level playing field.

The 6-month delay to July 2021 was proposed by the European Commission in June. This was in recognition of the COVID-19 pandemic. The Dutch and Germans had already asked for a pre-coronavirus delay as their IT system planning was behind schedule.

The 1 July 2021 changes include:

  1. Launching the One-Stop-Shop EU VAT return
  2. Ending low-value import VAT exemption and new IOSS return; and
  3. Making marketplaces deemed supplier VAT.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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