Webinar ‘European e-commerce in 2021, new VAT and authorized representative rules as per July this year’
This year considerable changes will be introduced in the areas of VAT and Authorized Representation (AR). As of 1 July 2021, new European VAT rules for business-to-consumers (B2C) transactions will apply, impacting suppliers of services, goods, marketplaces and postal couriers.
As of 16 July 2021, new regulation on product conformity and market surveillance for businesses selling to the European Union will apply. The European Union published Regulation (EU) 2019/1020 on Market Surveillance and Compliance of Products on 20 June 2019. The regulation aims to protect customers’ health and safety, the environment and other public interests by improving and modernizing market surveillance.
During the webinar ‘European e-commerce in 2021, new VAT and authorized representative rules as per July this year’ two specialists, René Schilder, Managing Director Focus on VAT, and Han Zuyderwijk, Founder Cemarking.net, elaborated on this.
Missed it? Please click here to see the webinar.
Q&A
Q:
It looks like EU Authoroties are willing to also address platforms which are not established in the EU for VAT liabilities. Is that the case?
A:
Yes, that’s the case. Every platform that facilitates B2C sales in the EU is subject to the new rules, regardless if they are based in the EU or not.
Q:
Isn’t there also the obligation to customs clear shipments upto 150 euro in the country of destination? So if iOSS is not applied, you still need to clear in country of destination.
A:
No, the restriction only applies when the I-OSS is not used
Q:
The simplification under 10.000 turnover only applies for EU distant sellers and not for Non-EU distant sellers?
A:
Correct
Q:
Will the Dutch authorities (Customs/Financien) be ready on July 1st? Is there any information on other countries?
A:
yes, they are ready. how, we don’t know yet. this must become known this month
Q:
Will there be any changes for GFR, where a 3PL act as a EU distribution center for e-commerce shipments and what about the EU threshold amounts?
A:
yes and no. No: GFR can still be used. Yes: output can be reported by OSS. Problem: split in reporting. not fully clear yet how to solve that
Q:
Are platforms like ali express also VAT liable when goods are shipped directly do consumers (so no warehouse involved in the EU)?
A:
yes, until € 150
Q:
Under which circumstances can we keep our current VAT registrations under OSS regime? (for example if we have also B2B transactions, can we keep current VAT registrations in that country?)
A:
for B2B nothing changes. for B2C output may be reported via OSS in 1 EU country
Q:
After July1, if you are a non-EU business selling through Amazon FBA only and shipments under EUR 150 only, will you still need to register for VAT in a EU country (for OSS) even if Amazon will be taking care of VAT collection and remittance?
A:
yes, but not for OSS. A local VAT number is necessary to report the receipt in that country (ICA). Amazon will report + pay the VAT
Q:
can the I-OSS registration number also be used for import declaration which cannot be declared through DECO but have to be declared in AGS, due to restrictions on import?
A:
No, to my knowlegde this requires an AGS clearance.
Q:
Import in other EU country than country of arrival /customer, means per 1-7-2021 that import VAT and local VAT is due in country of arrival of customer? Use of NL VAT rep office for import and subsequent supply to other EU country not possible anymore.
A:
ad 1) yes
ad 2) no
Q:
Do these regulations only apply to the products that were listed?
A:
The article in Regulation 1020/2019 that requires non-EU based manufacturers and sellers to appoint an authorised representative or work through a fulfillment service provider that offers product compliance solutions applies to the products that are covered by the EU regulations mentioned on the slide in my presentation.
Q:
My understanding then is that the only time you need a ‘responsible person’ is when you’re selling a product covered by the regulations you mentioned early in your presentation?
A:
Yes, that is correct.
