NEW VAT RULES FOR E-COMMERCE

From 1 July 2021, new rules will apply to companies that sell physical products to consumers within the EU . So if you do not only deliver to consumers within Belgium, but also regularly send a package to the Netherlands, Germany or other European countries and that for a minimum amount of €10,000 (excl. VAT) per year, you will have to make adjustments in your webshop. to ensure that the VAT settings for your webshop are correct.

From July 1, 2021, VAT will be determined based on the delivery address of the goods (even if the billing address is in another country).

WHAT WILL CHANGE IN VAT RULES FOR DELIVERY TO COUNTRIES IN THE EU?

In the past, regardless of who you supplied to, the VAT rate was always based on the country where the webshop is located. If you delivered to a consumer in another country within the EU, the Belgian VAT rate was calculated and paid.

From now on you have to set and calculate the applicable VAT rate for that specific country. This VAT can differ per country and can also differ per product type.

Here you will find the VAT rates for the various EU countries .

WHO AND WHEN DOES THE NEW VAT RULE APPLY?

The new VAT scheme applies to:

• Selling physical goods and digital services
• Sales to consumers (individuals)
• Only for companies that generate more than €10,000 in turnover (that is, excluding VAT) per year from sales to countries that belong to the EU (excluding Belgium)

If you meet all 3 of these criteria, it is important that you adjust the settings in your webshop, in order to comply with this regulation as soon as possible.

SET UP THE NEW VAT RULES FOR THE EU IN YOUR WEBSHOP

Do you meet all 3 of the above conditions? Then you have to adjust the settings in your webshop to continue to meet the correct conditions.

Contact wekreate so that we can also set up your webshop in accordance with the legal provisions