Implementation VAT e-commerce package in the Netherlands by 1 January 2021 unlikely | Deloitte Netherlands

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Implementation VAT e-commerce package in the Netherlands by 1 January 2021 unlikely

According to the newly appointed Dutch State Secretaries of Finance it is highly unlikely that the VAT e-commerce package will be implemented by 1 January 2021. The delay is caused due by the current ICT problems the Dutch Tax Authorities are having.

Failure to implement the new EU e-commerce regulations in a timely manner can have major consequences for businesses involved in cross-border trade to consumers.

Background

State Secretaries Vijlbrief and Van Huffelen sent the House of Representatives a letter (only available in Dutch) addressing the problems the Dutch Tax Authorities are currently experiencing. For a long time, the Tax Authorities were successful in fulfilling their tasks. However, this has led to many new tasks being added and an increasing complexity. As a result, the Tax Authorities have come under pressure due to the outdated ICT systems, according to the State Secretaries.

As a result of these ICT problems, the implementation of the EU VAT e-commerce package is likely to be postponed. The Tax Authorities are investigating how and when the measures can be implemented. The State Secretaries will inform and involve the European Commission. It is yet unclear whether there are any conceivable and feasible alternatives. The State Secretaries will inform the Dutch Parliament about further developments before the summer of 2020.

These developments make it unclear to business involved in cross-border trade whether they must have their systems adapted to the new e-commerce rules by 1 January 2021. The State Secretaries do not discuss this in their letter.

We will keep you informed about any further developments.

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