Cross-border VAT e-commerce is being modernised in the EU !

From 1 July 2021, the VAT rules on cross-border business-to-consumer (B2C) e-commerce activities will change. 
The rationale for these changes is to overcome the barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments.

What are the changes and benefits:......

Consumers will appreciate knowing that when buying goods online from inside the EU, the VAT rate applied is the same as for goods acquired in their home country - the new rules make sure that VAT is paid where consumption of goods takes place.
EU citizens will see public revenues increase - thanks to increased VAT payments and less VAT fraud, all Member States will benefit.

From this point on, cross-border deliveries of goods to non-entrepreneurs will be taxable in the destination member state, and the corresponding amount of VAT will be payable there.

This means, for example, that as of  1 July 2021, 20% VAT will be shown on invoices for deliveries to France, and 25% VAT will be shown on invoices for deliveries to Italy. The recipient in Italy therefore no longer benefits from the 21% VAT rate in The Netherlands.

More info on this matter can be found here on the official website of the European Union:
https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3098

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