As of July 1st 2021, the EU pushed for modernization of cross-border e-commerce VAT rules. The new legislation introduces substantial new VAT liabilities and compliance requirements. These concern 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. Now, it creates a VAT-level playing field for businesses. However, considerable complexities for marketplaces come attached to it.
To avoid being non-compliant, these marketplaces must ensure a series of additional measures. This guide aims to look at the new VAT rules for marketplaces and the practical implications they can have on a marketplace business.
Read the eGuide by Vertex to learn the key areas of change directly relevant to marketplaces, and to better prepare yourself to navigate and comply.
