From 1 July 2021, the rules on VAT for e-commerce will change. From 1 April 2021, businesses can sign up for the new One Stop Shop counter.
Deliveries to non-business customers
This is important for businesses that supply goods to non-business customers (private individuals) within the EU. VAT on such supplies must be charged at the rate applicable in the country where the private individual resides. However, VAT cannot, of course, be passed on to the private customer. The supplying business must therefore pay the VAT in the country where the private customer resides.
The One Stop Shop (OSS) is being introduced to prevent traders from having to register with the tax authorities in the country where their customers live. The OSS enables Dutch businesses to pay all VAT to the Dutch Tax and Customs Administration. The Dutch Tax and Customs Administration then passes this VAT on to the Member States where the private customers reside.
Threshold
But aren’t there still thresholds in this context? That is correct, but the current thresholds, which apply on a Member State-by-Member State basis, are being replaced by a single threshold of just €10,000. VAT must be paid in the country of the private customer if the total value of such supplies across the EU in a calendar year exceeds €10,000. Supplies to Dutch private individuals do not count towards the threshold. Digital services supplied to private individuals in other EU countries do count towards the threshold.
Businesses whose sales do not exceed the €10,000 threshold charge Dutch VAT on their supplies.
Although the new rules come into force on 1 July 2021, the full threshold of €10,000 will still apply for 2021.
What will the VAT burden be?
Of course, simply registering for the new OSS is not enough for you as a business owner. It is also important to work out (or have someone work out) which VAT must be paid via the OSS. After all, this is the VAT due in the country where the customer lives.
Input
The rules governing the import of goods from outside the EU are also changing. The most significant change for the competitiveness of (online) shops in the EU is that the import exemption for goods valued at up to €22 is being abolished.
New import rules are intended to ensure that the import of goods intended for private consumers continues to run smoothly.
New rules will also come into force on 1 July 2021 for sales to private customers via a platform.