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Changes to VAT import regulations for the EU in 2021

From 1 July 2021, the EU will introduce significant changes to how Value Added Tax (VAT) is collected on:

  • Imports into the EU
  • Supplies within the EU by non-EU sellers
  • And cross-border supplies by EU sellers.

Changes to eBay/eBay’s responsibilities

eBay will collect and remit VAT based on the seller’s location, consignment value, and the item location for sales into the EU:

Seller locationConsignment valueItem locationeBay will collect & remit VAT based on delivery country in the EU
Inside EUUp to €150Outside EUYes
Inside EUAbove €150Outside EUNo
Outside EUUp to €150Outside EUYes
Outside EUAbove €150Outside EUNo
Outside EUAny valueInside EU*Yes
Inside EU*Any valueInside EU*No
*delivery address is in the same EU country or in another EU country

What sellers have to do

eBay asks that all sellers provide a gross price and a separate VAT rate on their listings, so that eBay can determine the correct amount of VAT to collect from consumers based on their location.

Separate from eBay obligations, EU sellers with an annual turnover of more than €10,000 for their complete intra-EU cross-border supplies will have to charge the VAT of the EU country of delivery.

Cross-border trade sellers should assess the impact on their business and prepare for the changes.

Please check the updates to be informed with this topic.

Additional changes

The current VAT exemption for imports of goods in a small consignment of a value of up to €22 into the EU will be abolished.

The current distance selling thresholds for intra-EU cross-border supplies will be abolished.

Please contact your tax adviser for questions on your VAT obligations.

You can find more information on EU VAT for e-commerce here.