As of July 1st, 2021 cross-border e-commerce VAT rules have been modernized in the EU. The new legislation introduces substantial new VAT liabilities and compliance requirements for 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 and creates a VAT level playing field for businesses. However, it brings with it considerable complexities for marketplaces.
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, to better prepare yourself to navigate and comply.