New VAT rules for international e-commerce

This information is provided by

Netherlands Enterprise Agency, RVO

Effective date: 1 July 2021

What changes?

Do you have an online store? Do you sell goods or services to customers, who do not file VAT returns in other European Union Member States? There will be new VAT rules for e-commerce.

Separate thresholds disappear

Right now, every EU country can set its own threshold amount for long-distance sales. These separate thresholds will disappear and there will be 1 new threshold of €10,000. This threshold amount applies to all long-distance sales of goods and digital services to customers in the EU. If the total amount of sales in each separate EU country is less than €10,000 a year, you charge your own country’s VAT rate. Are your sales worth over €10,000 a year? Then you charge the VAT rate of the EU country where your customer lives.

No more VAT exemption for imported goods valued up to €22

Under current rules, imported goods from non-EU countries are exempt from VAT (invoer-btw) if the package has a value of €22 or less. This exemption will no longer exist. As of 1 July 2021, all imported goods will be taxed with VAT. Shipments with imported goods valued up to €150 can still be exempted from VAT with the import scheme (invoerregeling). Read more about the import scheme and other VAT measures.

Platforms with an active role need to pay VAT

Non-EU companies can sell goods in the EU through an online platform, like an online market place. At the moment, online platforms are not liable for the import VAT on these goods. With the new VAT rules online platforms will be responsible for the VAT if the platform has an ‘active role’. An active role means more than just bringing together online supply and demand. For instance, enabling orders and payment of products. In this case, instead of the supplier, the platform delivers the products to private customers. Because of this, the platform pays VAT to the country where the customer resides. Other rules are:

  • A seller delivers goods to customers in the EU through the platform;
  • The goods are worth €150 at most;
  • The goods are imported into the EU.

Is the package worth over €150? Does the platform facilitate an entrepreneur from outside the EU and are the goods supplied cross-border within the EU? Then the platform also needs to pay VAT.

For whom?

  • entrepreneurs that deliver goods or services to customers who do not file VAT returns in other EU countries.
  • platforms

When?

This change in regulations will come into force on 1 July 2021.

This information is provided by

Netherlands Enterprise Agency, RVO