VAT e-commerce rules: countdown to 1 July 2021

 The changes to the VAT rules for e-commerce enter into effect on 1 July 2021. They include a new One Stop Shop, a new Import One Stop Shop, new rules for Distance Sales of goods, and other changes. Are you up to date on the upcoming changes and on how they may impact you / your clients?

Find out more – Resources published by the European Commission

Information on the OSS, the IOSS and other changes is available from the dedicated resources portal of the European Commission. The legislation implementing the new rules into Maltese law has been published in LN 219 to 226 of 2020.

Furthermore, the Commission’s Explanatory Notes provide guidance on the new rules and their application in practice.

What’s new? – The One Stop Shop

The Mini One Stop Shop currently applies to the reporting and payment of EU VAT charged and collected on B2C telecommunications, broadcasting and electronically supplied services within the EU.

With effect from 1 July 2021 the MOSS will become the OSS and will be available to:

  • EU and non-EU suppliers of all B2C services which are taxed in a Member State other than where the supplier is established. In the case of a service provider established in Malta, this would apply, for example, to B2C services connected with immovable property located in another EU Member State or admission to events taking place in another EU Member State.
  • EU and non-EU suppliers of intra-EU Distance Sales of goods.

Via the OSS, taxable persons can declare and pay the VAT charged and collected on the relevant B2C supplies of goods/services in the Member States of their customers.

Taxable persons established in Malta as well as non-taxable persons who have no EU establishment may register for the OSS in Malta via the website of the Office of the CfR. Further information is available at this link.

What’s new? – The Import One Stop Shop

Currently, the importation of goods of a value up to EUR 22 is exempt from VAT. The exemption will be removed from 1 July 2021, and all commercial goods imported into the EU from a third country or third territory will be subject to import VAT irrespective of their value.

The IOSS is the electronic portal businesses can use from 1 July 2021 to comply with their VAT e-commerce obligations on distance sales of imported goods valued at less than EUR 150.

Find out more about the obligation for non-EU suppliers to appoint an EU intermediary under the IOSS.


What else is changing? Who will be impacted?

The new rules will impact the following businesses:

Find out more from the VAT e-commerce resources portal of the European Commission.