As of July 1, 2021 , the VAT rules governing cross-border business-to-consumer (B2C) e-commerce activities have changed. These changes will resolve existing problems relating to cross-border online sales, arising both from VAT regimes for distance sales of goods and from the importation of low value consignments.

Here are the main changes:

Online sellers, including marketplaces/platforms, can register in an EU Member State , to declare and pay VAT on all distance sales of goods and delivery of services to customers located on the EU territory.

Online sellers and marketplaces/platforms will benefit from reduced red tape (up to 95%) by registering on the new One Stop Shop (OSS) .

Existing thresholds for distance sales of goods within the EU have been abolished and are replaced by a new threshold of EUR 10,000 applicable across the EU . Below the threshold of 10,000 euros, the supply of telecommunications, radio or television services or electronic services (TBE) and distance sales of goods within the EU remain subject to VAT in the State member where the taxable person is established.

Special provisions are introduced whereby online marketplaces/platforms facilitating the delivery of goods are considered, for VAT purposes, to have themselves received and supplied the goods (“deemed supplier ”).

In addition, new record keeping requirements are introduced for online marketplaces/platforms facilitating the supply of goods and services, including where the electronic interface is not considered a deemed supplier.

The VAT exemption on the import of small consignments up to a value of EUR 22 is removed, meaning that all goods imported into the EU are now subject to VAT.

But we are here to help! A new special regime for distance sales of goods imported from territories or third countries will be created. The import one-stop shop (IOSS) was created to simplify the declaration and payment of VAT.

Finally, measures to simplify distance sales of goods imported in shipments not exceeding EUR 150 have been introduced, for situations where the IOSS has not been used ( special regimes ).

Thus for all people placing their orders in the European Union will have to pay the tax of their country. So the price will change according to the destination of the product.

All orders outside the European Union are subject to customs in the country of destination.