Once again, the EU is completely transforming its tax policy. On July 1, the EU will implement brand new rules around VAT for e-commerce.
Don’t let your business get blindsided! Take a moment to read our breakdown below and visit our EU VAT Hub, which has everything you need to know about the changes.
The EU is changing VAT rules to make tax compliance easier for businesses like yours, to clamp down on VAT fraud from businesses we’re guessing are not like yours 😉 — and to encourage fair cross-border trade within the region.
In short, the new policy package contains 3 things that will transform how online businesses handle EU VAT:
- Distance selling thresholds are out the window. Instead, businesses that sell physical goods across EU borders will now enroll in the One-Stop Shop (OSS).
- The import of “low-value goods’’ has a new scheme, too. The Import One-Stop Shop (IOSS) will be available to businesses that import goods that are less than €150 in total value.
- Marketplaces are on the hook for EU VAT! Though still unclear which specific online marketplaces are affected, the new policy will require certain “electronic interfaces” to collect and remit EU VAT on your behalf, if you’re selling on those platforms.
Seems complex, but we’ve made it simple for you! Everything you need to know, including how to prepare your business for July 1, is here in our EU VAT Hub.
Most of your questions should be answered there, but of course if you have any others, we’re here to help!
* At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or accountant.
