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 entered into force on 1 July 2021.

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

The main changes that entered into force on 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 made to the VAT Directive were transposed into Irish law through the following regulations:

  • S.I No. 327 of 2021 - European Union (Value-Added Tax) Regulations 2021
  • S.I No. 328 of 2021 - European Communities (Exemption from Value-Added Tax on the permanent importation of certain goods) (Amendment) Regulations 2021 

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