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~ PostNL ~

NEW VAT

(VALUE ADDED

TAX) RULES ON

THE HORIZON

Text: Marieke Koets // Photos: PostNL
We have been dealing with COVID-19 for more than 12 months now. But with the vaccine
being rolled out, we are all looking forward to a summer where we can move more freely and
enjoy each other’s company again. At the same time, it is interesting to see what will happen
to online shopping when most COVID-19 measures are lifted. Dutch research has shown
that the pandemic did not necessarily lead to an increase in cross-border e-commerce in the
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Netherlands . But people who, up until the COVID-19 outbreak, did not have too much
interaction with webshops have been shopping cross-border more often thanks to it.
While we can speculate about the future of cross-border e-commerce, there is one thing that
is about to change this summer: the current EU VAT rules.

urrent situation and changes to come number in every EU country, the second amendment provides
The EU wants to update the VAT rules, simplify the for the “one-stop-shop” to be extended to consumer goods. This
CVAT obligations for entrepreneurs and, fight against means that you no longer have to apply for a VAT number
misuse of VAT rules so that European and non-European and submit local VAT returns in every EU country where
businesses compete fairly. you sell. One declaration for all your transactions throughout
Europe will suffice.
And so, from 1 July 2021, VAT rules are changing.
Jan Van Moorsel from EY Belgium has explained the most The final one is that the VAT exemption for low-value ship-
major changes very well: ments will disappear. Now there is a threshold of 22 euros.
One problem that has been identified is that some non-Eu-
“…there will be a uniform (to be viewed annually) turnover ropean traders undervalue their parcels below that threshold
distance selling threshold of 10,000 euros for the entire EU. so that they or their customers do not have to pay VAT. Now
Are you (entrepreneur) exceeding that? Then you must settle that the threshold disappears, in principle, every delivery in
the VAT in the Member State of your customer. At the mo- which the goods are imported into the EU will also be taxed
ment, there are thresholds of 35,000 euros and 100,000 euros with VAT.” 2
applicable depending on the country. As a distance seller,
under the new VAT rules, you will start charging local VAT
to your customers much sooner than now, which would also What is the impact?
mean the local VAT obligations are applicable sooner. We can’t say for certain how the new rules will impact
However, in order to reduce the need to apply for a VAT consumers and businesses.

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