Major changes are coming to European e-commerce. Beginning 1 July 2021, the EU VAT E-Commerce Package will take effect, making all commercial goods imported into the EU from a third country or third territory subject to VAT.
Changes in consumer behavior brought about by the pandemic are accelerating the growth of the EU e-commerce market. As global e-commerce continues to transcend regional borders, understanding the implications of the Package will be critical to businesses based outside EU that consider the region a key growth market.
Our global indirect tax team has prepared this insight to guide you on the key points of the package: what has changed, how these changes are expected to impact businesses and their consumers, and what companies should do to comply and avoid commercial risks.