New VAT rules for e-commerce take effect July 1 in the EU and will reshape how e-commerce vendors and marketplaces operate. The changes will potentially impact everything from how VAT is calculated and reported across the EU to the data that a vendor or marketplace must collect for each transaction. Businesses that don't understand the new regulations will almost certainly end up struggling to comply or risking non-compliance.
Vertex VAT Director, Peter Boerhof, joined the Multichannel Merchant MCM CommerceChat Podcast to describe why the rules are changing, considerations vendors should prepare for, and the potential impacts to businesses operating in the EU. Peter added that if they have not done so already, entities involved in online sales of products to consumers in the EU need to start assessing the impact of these new VAT rules on their sales transactions, systems, and processes as the July 1 effective date is approaching rapidly.
He outlines how technology solutions like Taxamo Assure can help companies meet new compliance burdens and integrate seamlessly with sellers’ existing checkout process, providing real-time compliance without delay or disruption to the customer journey.