European Commission postpones the VAT e-commerce rules until 1 July 2021
Significant aspects of the VAT rules for international trade related to e-commerce were supposed to change on 1 January 2021. Due to the COVID-19 crisis, however, the European Commission has decided to postpone application of the new VAT e-commerce rules until 1 July 2021.
Practical consequences: more time to prepare for the new rules
The EU Member States agreed to the postponement and it has been formally adopted by the European Council. This gives both Member States and businesses more time to prepare for the new VAT e-commerce rules.
The future VAT rules for e-commerce are complex. It’s important to think about the consequences of the VAT e-commerce rules and to determine the consequences in your situation. The postponement gives you more time to do so.