A new regulation will come into force on July 1st 2021 concerning VAT for e-merchants selling in BtoC within the European Union. The objective of this new tax rule is to fight against the massive VAT fraud that has been observed on intra-EU distance selling.

Currently, the Mini One-Stop-Shop (MOSS) is intended to be used by suppliers of telecommunications, broadcasting, and electronic services established in another EU member state than the consumer/customer that provides their services to persons not subject to VAT.

As of July 1, 2021, the scope of this one-stop-shop will be extended:

• To all intra-Community distance sales above the €10,000 pre-tax threshold: currently, the seller who exceeds a certain threshold of sales to individuals in an intra-Community country must declare and pay VAT in the country of arrival. The sales thresholds before the reform were between 35 000 € and 100 000 € depending on the country. As of July 1, the threshold is now €10,000 for all EU countries.

• To distance sales of imported goods from a third country: the VAT exemption for imported goods below €22 has been removed. Companies importing goods with a value of less than €150 will benefit from a new import regime, i.e. the seller will be able to identify himself on the IOSS (Import One Stop Shop) one-stop shop, declare the VAT collected on sales made to individuals or non-taxable professionals and pay it back through the one-stop shop. The seller will no longer need to pay import VAT.

• To all cross-border supplies of services for which VAT is due in a Member State other than the one where the supplier is established.