Cross-border e-commerce with VAT is being modernised in the EU!
As of 1 July 2021, the VAT rules on cross-border business-to-consumer (B2C) e-commerce activities will change.
The reason for these changes is to overcome barriers to cross-border online sales and address the challenges arising from the VAT regimes for distance sales of goods and for the import of low-value consignments.
What are the changes and the benefits:......
Consumers will appreciate knowing that when they buy goods online from within the EU, the VAT rate applied is the same as for goods acquired in their country of origin - the new rules ensure that VAT is paid where the goods take place.
EU citizens will see an increase in government revenue - thanks to increased VAT payments and reduced VAT fraud, all Member States will benefit.
From now on, cross-border supplies of goods to non-entrepreneurs will be taxable in the Member State of destination, and the corresponding amount of VAT will be payable there.
This means, for example, that since 1 July 2021, VAT is 20% on invoices for deliveries in France and 25% on invoices for deliveries in Italy. The recipient in Italy therefore no longer benefits from the 21% VAT rate in Belgium.
More information on this subject on the official website of the European Union:
https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3098