With 2020 coming to a closure, what can we expect in 2021? Some departures, some implementations, and some arrivals.
By the end of 2020, the EU's e-commerce market's total value will pass the 717BN euros mark. Very few industries kept their positions in 2020, as e-commerce did. However, it seems that it was just the beginning.
With the second wave of COVID-19 hitting the EU, it seems that some new habits that all generations developed are here to stay for some time. With growing numbers and business going well, sometimes it is hard to keep track of important things happening in the law & regulation department.
Law & regulation (EU level) has prepared some exciting changes for 2021 that are already appearing on the horizon.
Friday 1st of January 2021 will be the first day for the UK out of the European Union. For buyers in UK e-commerce, that means that every imported good is subject to the VAT. Yes, that includes even the packages below the value of 15 GBP that are being excluded at the moment. Packages up to the 135GBP will be subject to the sales (or supply) VAT, and everything with a value greater than 135GBP will be subject to the VAT and import fees.
By the time everyone finally adapts to the Brexit and the changes going with it, there will be a time for a new significant change.
The 1st of July is the official implementation date for significant EU, aka "EU July 2021 ecommerce VAT Package" changes.
EU will launch One-Stop-Shop (OSS), remove the "low-value import" (goods up to 22 euro of value), thus ending the "Import One Stop Shop." By removing the "low-value import," the EU aims to collect an estimated 5 billion euros "loopholed" out of the Union. With the implementation of the mentioned changes, the role of marketplaces will also change. The marketplaces will become "deemed supplier."
The OSS change which will benefit some of the sellers as they will be able to report their VAT using just one (1) VAT return form instead of a number of them.
Some exciting things are about to happen in the tax software development industry, too, with some new players entering the arena.
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