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The new VAT scheme for e‑commerce

February 2021

The CMS TAX group is pleased to launch the guide on VAT e-commerce

This guide covers the VAT e-commerce package, which was first approved in 2017 (Directive 2017 / 2455) and added to in 2019 (Directive 2019 / 1995) and which is finally due to enter into force on 1 July 2021 (after being postponed due to the coronavirus crisis).

This new, extensive and bold package aims to adapt the VAT system, which was mostly designed for offline transactions, to the explosive growth of business-to-consumer (“B2C”) online transactions (In 2019, the EU online market is estimated to have reached EUR 620bn ) in the context of our technology-driven world.

The new rules are set to facilitate online sales within the EU Single Market, by easing compliance with e-commerce while promoting a level playing field between EU and non-EU businesses, thus increasing VAT revenue (in 2020, the EU estimates a EUR 7bn loss in tax revenues in the e-commerce sector) and targeting fraudulent businesses. The enlargement of the one-stop-shop (OSS) to most of the concerned transactions will ease the reporting and payment obligations.

Guide
The new VAT scheme for e‑commerce
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PDF 1.9 MB

Authors

Portrait ofArmelle Abadie
Armelle Abadie
Partner
Paris
Portrait ofElisabeth Ashworth
Elisabeth Ashworth
Partner
Paris
Portrait ofEtienne Cox
Etienne Cox
Counsel
Amsterdam
Portrait ofEmilie Dufour
Emilie Dufour
Associate
Paris
Portrait ofMarie-Odile Duparc
Marie-Odile Duparc
Counsel
Paris
Portrait ofArmonie Duverdier
Armonie Duverdier
Associate
Paris
Portrait ofEszter Kálmán
Eszter Kálmán
Senior Counsel and Head of Tax
Budapest
Portrait ofBerardo Lanci
Berardo Lanci
Partner
Rome
Portrait ofRoxana Popel
Roxana Popel
Head of Tax, Romania
Bucharest
Portrait ofDenis Redon
Denis Redon
Partner
Paris
Portrait ofCorinne Reinbold
Corinne Reinbold
Counsel
Paris
Portrait ofAmélie Retureau
Amélie Retureau
Partner
Paris
Olinka Kowalski
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