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This amount, it is estimated that around €50,000 million (i.e. €100 for every EU citizen every year) will end up in . For this reason, and also given the boom in online sales following the restrictions dictated by Covid-19, the European Commission has decided to accelerate the implementation of changes to the reform of the VAT system in the EU . This reform aims to avoid losses of tax revenue and significantly reduce cross-border VAT fraud , so that European and non-European businesses compete on an equal footing.

When were the changes implemented? The changes to the VAT reform UAE Phone Number went into effect on 1 July 2021 in all EU Member States and affect all e-commerce. The VAT Directive includes the following reform changes: elimination of thresholds in distance selling end of VAT exemption on imports of low-value consignments VAT liability on marketplaces for distance sales of goods imported from third countries. To better understand the significance of these changes, it is important that we first take a look at the situation before the change.



The VAT situation in e-Commerce Before the reform, when the annual turnover of an e-Commerce deriving from customers from other European countries exceeded a certain threshold , the online store had to register with the tax authority of the country to which it supplies the products and tax the tax of that country. But if the online shop did not exceed that certain threshold, only the VAT of the country of origin (i.e. the VAT of the country in which the online shop is registered) was applied when invoicing for customers abroad .