Marketplace eGuide: Practical implications of EU e-commerce VAT rules

Implemented July 1st, 2021

As of July 1st, 2021 cross-border e-commerce VAT rules have been modernised in the EU. The new legislation introduces substantial new VAT liabilities and compliance requirements for both online merchants and marketplaces/multi-seller platforms facilitating sales to EU private consumers. The legislation puts an end to governments missing out on indirect tax revenue from distance sellers and creates a VAT level playing field for businesses. However, it brings with it considerable complexities for marketplaces. 
This guide will help you navigate the practical considerations of this new legislation. 
This guide will cover some of the following topics: 

  • Line-item liability assessment 
  • Product classification and VAT calculations 
  • Customer location determination for eCommerce sales 
  • Complex invoicing  
  • Value of sales calculations – the EUR150 limit 
  • Seller onboarding 
  • Record keeping