New e-commerce rules enter into force


On 1 July 2021, the measures of the EU e-commerce package entered into force, bringing new rules for distance sales:

Intra-EU distance sales

  • The distance sales threshold has been abolished, meaning that VAT must be paid on intra-EU distance sales of goods in the destination Member State, starting from the first Euro.
  • Micro-enterprises with revenues from intra-EU distances sales of goods, electronically supplied services, or telecommunication and broadcasting services not exceeding EUR 10,000 per year shall continue to pay VAT in the Member State of origin. It is possible for small businesses to opt out of this rule.
  • The EU-OSS procedure can be used to declare revenues in the Member State of identification for VAT purposes.

EU One Stop Shop (EU-OSS)

  • The EU-OSS has been extended to apply to all services supplied to non-taxable persons in the EU, all intra-EU distance sales of goods, and all supplies of goods via electronic interfaces.
  • Special record keeping requirements must be observed.
  • Advance registration has been possible since 1 April.

Distance sales of imported goods (IOSS)

  • The import VAT exemption for goods with low value (up to EUR 22 per consignment) will be abolished, meaning that all imported goods from distance sales are subject to (import) VAT in the destination Member State.
  • If the individual value of the goods per consignment does not exceed EUR 150, the supplier may make use of the IOSS.
  • In case the IOSS is used, the taxable person is identified for VAT purposes in a single Member State and declares and remits the VAT in that state. The supply of goods is exempt from import VAT at the time of import if the IOSS identification number is disclosed.
  • Third country businesses can only take part in the IOSS via a representative that is resident in the EU. The representative shall be held jointly and severally liable for payment of the VAT together with the supplier.


  • Electronic interfaces which enable the supply of goods shall become liable for the payment of VAT on certain distance sales of goods to non-taxable persons.
  • Platforms can use the EU-OSS and the IOSS.

Author: Selina Siller

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