European Union (EU): A new era for VAT in ecommerce

The EU has introduced new rules on e-commerce from July 2021 and the aim of the changes is basically to build a more reliable and less complex “Digital Single Market Strategy for the European Union”.

These changes bring with them, A fairer competition for EU businesses in the supply chain and facilitation of regional cross-border trade along with the fight against VAT fraud.



Who is affected by these changes?

Anyone in the e-commerce supply chain is affected, from online retailers and electronic interfaces such as marketplaces, platforms, etc.


What are the purposes of these changes?

The main purpose of the new VAT changes introduced for ecommerce is to boost cross-border trade of online sales by assuming obligations, preventing tax fraud and creating fair conditions of competition.

The new changes will prevent VAT fraud and establish fairer conditions of competition between EU and non-EU businesses.


What can non-EU based ecommerce do?

The Import One Stop Shop (IOSS) is the electronic portal that businesses can use from July 1, 2021 to fulfill their ecommerce VAT obligations on distance sales of imported goods.

According to the VAT rules applicable until July 1, 2021 , no import VAT is due on trade goods with a value of up to EUR 22.



Crossborderit can help you simplify things.

CBIT has it covered for you. With simple incorporation and simple, flat shipping rates, it will be very easy to calculate duties, collect them and even pay them for you. Plus, CBIT offers simple DDP for these solutions for an excellent, hassle-free customer experience.

Simply sign up and let Crossborderit take care of the rest.



Damon Baca


Crossborderit (CBIT)

Related Posts

The VAT regime in the European Union: for ecommerce in the region

The VAT regime in the European Union: for ecommerce in the region

The taxation of e-commerce for VAT in the EU started in July this year, and businesses that do not understand the new rules continue to struggle to comply. The changes will potentially affect the entire supply chain, from how VAT is calculated and declared in the EU...