Changes to VAT import regulations for the EU in 2021

What you need to know

As mentioned in the autumn 2020 seller update, effective from 1 July 2021, there will be changes to the VAT treatment of imports into the EU, as well as certain shipments within the EU. Please make sure you’re informed of your VAT obligations.

Changes to EU VAT for cross-border e-commerce

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 location, consignment value and the item -location for sales into the EU:

Seller location Consignment value Item location eBay will collect & remit VAT based on delivery country in the EU
Inside EU Up to €150 
Outside EU
Yes
Inside EU
Above €150 
Outside EU
No
Outside EU Up to €150
Outside EU
Yes
Outside EU
Above €150 
Outside EU
No
Outside EU
Any value Inside EU*
Yes
Inside EU*
Any value Inside EU*
No


*delivery address is same EU country or in another EU country

What sellers have to do

  • eBay asks that all sellers provide a gross price and 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.

  • We will keep you informed with updates on 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 VAT for e-commerce here.