|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
|Series Details||L 244, Pages 3-5|
Decision (EU) 2020/1109 adopted by the Council of the European Union on 20 July 2020, which introduces a number of amendments to Directive (EU) 2017/2455 and Directive (EU) 2019/1995 as regards dates of transposition and application of rules aimed at modernising cross-border B2C Value Added Tax (VAT) rules, in light of the COVID-19 (coronavirus) pandemic.
Directive (EU) 2017/2455 and Directive (EU) 2019/1995 are both part of a package of legislation aimed at modernising VAT for cross-border B2C online commerce (also known as VAT e-commerce package). In both cases, the date of application was fixed to be 1 January 2021, allowing Member States some time to adapt their legislation and IT systems.
A state of play of the readiness of Member States was presented by the European Commission in February 2020, whereby two Member States raised concerns and requested a postponement for the entry into application. While initially support was provided to make sure the date of application was respected, the virus outbreak later caused a major impact on capacity across the European Union. An additional number of Member States were unable to conclude preparations.
A meeting was held on 24 April 2020 to assess readiness and the conclusion was that the provisions on the functioning of the VAT e-commerce package are based on the principle that all Member States should be in a position to apply them correctly. The objective of this proposal is therefore to postpone the date of application by six months, with a new date coming into effect on 1 July 2021.
The proposal was tabled by the European Commission on 8 May 2020. The Council of the European Union adopted the Decision on 20 July, which was published in the Official Journal on 29 July 2020.
|Subject Tags||Value Added Tax [VAT]|
|Keywords||COVID-19 Outbreak, Electronic Commerce | E-commerce
|International Organisations||European Union [EU]|