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Who is affected?

All players in the e-commerce supply chain are affected, from sellers and marketplaces/platforms, both within and outside the European Union, to postal operators and courier companies, customs and tax authorities in the various Member States of the European Union, and consumers.

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European end consumers

The new regulations on the VAT In e-commerce, it aims to provide transparency, simplify procedures, and ensure fair taxation for all suppliers. Previously, companies from outside the EU could avoid paying the VAT and had no obligations in terms of VAT in the EU, so their prices were lower. As a result, companies in the EU were harmed. Due to the lack of transparency, consumers were sometimes faced with costs or charges to be paid at customs for imported products. However, starting July 1, 2021, the price you pay may be the final price, without having to pay the VAT or other import taxes. This only occurs when goods are purchased from a seller or electronic interface registered with the IOSS.

If you do not register with the Single Import Window (IOSS), you will have to pay the VAT and other possible postal/transport charges when the goods are imported.

The new rules will make it possible to:

  • Ensure that the VAT paid where goods and services are consumed.

  • Create a regime of VAT uniform and transparent for cross-border deliveries of goods and services.

  • Establish fair competition between European and foreign operators in the e-commerce market, as well as between e-commerce and brick-and-mortar stores.