Proposed delay implementation VAT e-commerce package until 1 July 2021 | Deloitte Nederland

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Proposed delay implementation VAT e-commerce package until 1 July 2021

The European Commission plans to delay the implementation of the VAT e-commerce package from 1 January 2021 to 1 July 2021. This will allow both businesses and EU Member States more time to prepare for the necessary changes.

13 May 2020

Background

As part of a broader postponement of EU taxation measures following COVID-19 related difficulties currently faced by businesses and EU Member States, the European Commission proposed on Friday 9 May 2020 to delay the entry into force of the VAT e-commerce package by six months.

The new rules, under which all B2C sales of goods to EU consumers will be taxed in the destination Member State, will apply as of 1 July 2021 instead of 1 January 2021. This will allow Member States and businesses more time to prepare for the necessary changes.

The Commission recognizes the issues several EU Member States are having with the IT system required for the implementation of the VAT e-commerce package (amongst which the Netherlands; further details can be found in our alert). Concerns were also raised by key economic operators, especially postal and courier operators, who urged the Commission to postpone the date of application of the package.

Next steps

The formal adoption of the proposal now requires the European Parliament and the EU Council’s action.

The extension, if accepted, will be welcomed by the Dutch Tax Authorities and by businesses that are preparing for the new rules, but are currently busy with dealing with the effects resulting from the COVID-19 crisis.

We will keep you informed about any further developments.

Finally

If you have any questions regarding the above, please contact your VAT advisor.

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