Weekly tax updates 09-02-21

VAT Friday: EU new rules distance sales July 1, 2021

From July 2021 new VAT rules for distance sales will apply. This will mean a huge change for businesses selling to consumers (B2C) in other EU countries.


The new setup for B2C distance sales is part of the e-commerce package that was introduced to reduce VAT fraud and to level the playing field for EU and non-EU businesses. Some items have already been implemented in earlier years. For distance sales, the change will take place from July 2021.

Under the existing distance sales rules, each country has its own threshold for registration and local VAT payment obligations. These local distance sales thresholds will be abolished per July 2021. Local rules will apply if sales have exceeded EUR 10,000 to other EU countries in total. Each EU member states however, will provide businesses with an online portal (One Stop Shop) where the business can fulfil all its local obligations. The business can fulfill all obligations of the countries where it distributes its goods to in its country of residence.

Please note that it may still be necessary to (also) register in the country where goods are stored. This should be carefully monitored and discussed with your logistics provider and platform provider.

To Do:

Review your supply-chain on how the changes will impact your business. Update the ERP system and contracts.

For questions please contact katharina.herzog@crowe-rwt.de , Peter.Empsten@crowe.be or r.hofman@crowefoederer.nl