Overview of VAT eCommerce rules

A number of important amendments have been made to the Value-Added Tax (VAT) Directive to simplify VAT obligations as regards eCommerce activities. These changes will enter into force from 1 July 2021.

These amendments will significantly change the way VAT operates for cross-border business-to-consumer (B2C) e-commerce activities in the European Union (EU).

The main changes that will enter into force from 1 July 2021 are as follows:

  • Extension of the VAT Mini One Stop Shop (MOSS) to a One Stop Shop (OSS)
  • The treatment of Online Marketplaces and Platforms as deemed suppliers for certain transactions
  • Introduction of a new Import One Stop Shop (IOSS)
  • Introduction of Special Arrangements for certain imports of goods.

The changes being made to the VAT Directive will be transposed into Irish law through a Regulation made under section 3 of the European Communities Act 1972.

Further guidance contains more detailed information on these new VAT eCommerce rules.