European Union (EU) VAT Updates for e-Commerce
Everything you need to know to stay compliant with EU VAT from 1 July 2021, whether your business is inside or outside of the EU.
New EU VAT regulations don’t have to complicate your e-commerce business...
On 1 July 2021, the 27 EU member states are introducing new EU VAT regulations for e-commerce sellers and marketplaces. These include the following significant changes:
- Introducing new One Stop Shop return for physical goods
- New Import One Stop Shop for low value goods and removing low-value good exemption
- Qualifying marketplaces and platforms as “deemed suppliers” for VAT purposes
These new rules are creating confusion and stress for business owners and marketplaces who sell in or to the EU, so we created the following content to help you navigate the new changes with ease.
Helpful info about EU VAT Updates
E-commerce EU VAT changes in 2021
E-commerce businesses around the globe, listen up! These new rules will transform how you do business in the European Union.
How new EU VAT rules for online marketplaces affect your business
The new EU VAT e-commerce policy package is coming into play as of July 1, 2021. Here's how it will affect your business with EU-based customers.
OSS or IOSS? EU VAT One-Stop Shop rules for e-commerce
Big VAT changes are coming for EU businesses that sell across borders, a.k.a. distance sellers, and for any other businesses importing low value goods into the EU.
A new problem for platforms: The rise of e-commerce tax laws in 2021 and beyond
As e-commerce booms, new tax laws loom over merchants and marketplaces. This is how marketplaces will adapt in 2021.
The Ultimate Guide to EU VAT for Digital Taxes
This is the guide for everything you need to know to stay compliant while selling digital products or service inside the European Union.
Preparing your Quaderno account for the new OSS and IOSS schemes
The new schemes simplify VAT registration and remittance in the EU. Learn how to prepare for these changes in your Quaderno account.
EU VAT Updates: Frequently Asked Questions
Will the EU distance selling rules still apply after July 1?
Nope, the old distance selling thresholds will no longer apply. Instead, these cross-border B2C sales within the EU will be covered by a new tax system, the One-Stop Shop (OSS). Once you’ve registered, every sale will be taxed according to its destination, i.e. the VAT rate of your customer’s country.
My business is based in the EU. What should I do?
As an EU business, you may register in the Union scheme of the One-Stop Shop (OSS), which will cover your B2C sales across all 27 member states. You can register directly in your home country, and then you’ll need to follow the new OSS rules outlined here. The great news is that you only file one tax return every quarter, no matter how many EU countries you sell in!
If you’re a Quaderno user, please check out our guide on how to prepare for the OSS.
My business is based outside of the EU. What should I do?
There are two possibilities for you! If you import physical goods to the EU, and those goods are less than €150 in total value, then you can voluntarily register with the Import One-Stop Shop (IOSS). Higher-value imports follow the same import and customs rules as before. If you store inventory in any EU member state, you can also enroll in the non-Union scheme of the One-Stop Shop (OSS). However, if you sell via online marketplaces, read the next FAQ!
If you’re a Quaderno user, please check out our guide on how to prepare for the IOSS.
Will marketplaces (like Amazon) take care of EU VAT for me?
Some online marketplaces will be responsible for EU VAT on behalf of non-EU businesses! If your business fits the criteria for IOSS (importing goods under €150 in value) or OSS (storing goods in the EU and making cross-border sales), then taxable B2C sales made on a marketplace might be taken care of for you. For exact details, read how the new EU VAT rules for online marketplaces affect your business. And be sure to check directly with the platforms you use!
Which online platforms are affected by the new laws?
For now, we understand it to mean any website or marketplace that helps you close the sale with the customer to a complete checkout. Third-party services, like payment processors or product listing sites, are not affected. To learn how these rules are defined and what marketplaces will be responsible for, read how the new EU VAT rules for online marketplaces affect your business.
Automate EU VAT compliance with Quaderno
Quaderno is a powerful and flexible digital platform that integrates seamlessly with your systems to automate the sales tax process from end to end. Thousands of SaaS companies, ecommerce entreprenuers, and digital content creators trust Quaderno to eliminate hours of confusing tax management and scale their business online.
Start Free Trial!The power of Quaderno for EU VAT Compliance
Focus on driving sales instead of keeping up with taxes
Automated tax reporting
Tax prep has never been easier and filing has never been faster, even if you sell your products across multiple platforms.
Real-time Threshold Tracking
Up-to-date tracking in every tax jurisdiction worldwide, so you never have to wonder where you are liable for local consumption tax collection.
Locally compliant documents worldwide
Generate tax-compliant invoices, receipt, and credit notes based on your customers location, and even verify VAT numbers for B2B sales.
Personalized Customer Experience
Improve your conversion rates and custom loyalty through customized friction-free checkout pages, branded documents, and a personal customer billing dashboard.
Trusted by thousands of savvy entrepreneurs all around the world
“Quaderno tax features are very valuable for us. As we grow, we are able to have more resources dedicated to control taxes, and Quaderno is very helpful.”
“Updating billing data is also easily done through Quaderno so there’s no need for a separate billing department within Marvel’s team.”
“Being able to comply with tax regulations globally means we have a larger target market and not having to manage tax for each transaction saves us hours of work.”
How it Works
Connect your payment processor with one click
Quaderno integrates harmoniously with your favorite Ecommerce platform, shopping cart, or payment processor. Our secure APIs access your sales data and begin automating your sales tax processes in seconds.
Calculate the correct tax rate on every transaction
Quaderno allows for real-time tax calculation for transactions across hundreds of tax jurisdictions all over the world by verifying the buyer’s location, applying the accurate tax calculation, adding it to the transaction at point of sale.
Monitor the metrics that matter
Visual dashboards put the power of real-time revenue data to work for you, so you know exactly what tax obligations you have anywhere in the world at any moment in time.
- Automatic threshold tracking across tax jurisdictions worldwide
- Instant rate change alerts
- Advanced financial insights to help you make better tax and business decisions
Use instant tax reports to file returns in minutes
Quaderno provides all of your financial data in easy-to-read reports ready to share with your trusted tax advisor. So you can finish the quarter celebrating, not slaving over returns.
Quaderno partners with certified tax advisors in your area who are experts in online businesses like yours and make stress around tax filing a thing of the past.
3 easy steps to effortless sales tax compliance
1
Start a free 7-day trial and connect your favorite payment processor or shopping cart
2
Quaderno immediately imports your sales data through its secure APIs and automates your tax processes
3
You forget about tax and focus on the work you love