VAT Rules for EU Online Distance Sellers

Updates for the EU E-commerce VAT legislation.

EU VAT update Ecommerce

It was recently announced that the European Union has adopted a set of proposals aimed at simplifying VAT rules for e-commerce businesses i.e. those involved in distance sales online.

Taxback International recently reported on the global update of VAT for eCommerce, discussing the European Commission publishing proposals, aimed at simplifying VAT rules for e-commerce business.

These new measures build on the European Commission's Digital Single Market Strategy for Europe. More information has now been release regarding the VAT rules being adopted.

From January 1st 2021, there will be an introduction of the 'Maxi One Stop Shop' (MOSS) - allowing business to account for VAT due on supplies of goods and services in other Member States - via a single portal located in their home Member State.

The EU are also planning on making online platforms liable for collecting VAT on the distance sales that they facilitate. The annual €10,000 threshold will apply from 1st January 2019 at which point e-services suppliers will be allowed to use invoicing rules applicable in their own Member State rather than those of the Member State of the customer.

These latest changes represent the next significant shift in EU taxation and reporting rules following the various changes introduced by the 2010 'VAT Package', culminating in the 2015 changes to the place of supply of B2C telecommunications and e-services, which included a 'Mini One Stop Shop' (MOSS) via which businesses can account for the VAT due on such supplies in other Member States via a single electronic portal in their home Member State.

If you have any questions regarding legeslation around VAT and ecommerce, get in touch with our team of experts today!

Learn More Today!


We know that Indirect taxes such as VAT and GST can have a huge effect on your business. As VAT rates change sporadically keeping yourself informed can be difficult.  Compliance is always crucial. That’s why our Indirect Tax Experts share their hand-picked news stories every day that you need to know. From breaking news to VAT changes and new EU legislation. We know that relevant information means better decision making. We aim to be your number 1 source for VAT and GST news.

Call Taxback Internatinoal  +353 56 778 34 00      

Email Taxback International   vat@taxbackinternational.com 

Connect with TBI on Twitter  Connect with us on Twitter

Connect with TBI on LinkIn  Connect with us on LinkedIn


Find what you're looking for!

see all