Changes to EU VAT Rules for E-Commerce Revealed

On 1 July 2021, changes to EU VAT rules for e-commerce will come into force.

The new rules are designed to:

• simplify existing VAT obligations;
• reduce red tape for businesses engaged in cross-border e-commerce;
• enable EU businesses to compete on equal footing with non-EU businesses by abolishing the current VAT exemption for low-value goods imported into the EU;
• combat VAT fraud, namely the abuse of the imported goods value threshold.

The new rules will also affect companies and enterprises involved in cross-border e-commerce with EU countries.

For more information on the new rules, please visit https://ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en.

The contact person in the EU Delegation to the Russian Federation in relation to this matter is Mr Tomas Kuchtik, tel.: +7 495 721 2032, email: Tomas.Kuchtik@eeas.europa.ue.