European Union: Implementation of EU VAT e-commerce package

The EU VAT e-commerce package (VAT for e-commerce) enters into force. It qualifies businesses that facilitate the supply of goods through the use of an online electronic interface as receivers and suppliers of the goods for VAT purposes, leading to VAT liability. The VAT for e-commerce offers businesses the choice to register with the new One Stop Shop (OSS) to reduce bureaucratic obstacles. Further, it reduces the threshold for intra-EU distance sales to EUR 10'000, affecting the rules determining the place of supply, businesses surpassing the threshold in a member state will need to register an account for VAT there. It introduces the VAT One-Stop-Shop, allowing businesses making intra-EU distance sales surpassing the threshold to register for one VAT in only one member state. It abolishes the import VAT exemption for small consignments and introduces new rules for goods imported from third countries with a value below EUR 10'000 and establishes an Import VAT One-Stop Shop for non-EU businesses selling such goods.