As from 2021, modifications in e-commerce and online platforms
As from 2021, the VAT rules for online platforms will change. Online platforms play an important role in e-commerce and are becoming increasingly larger and more international in nature. Platforms unite supply and demand. What is new is that the VAT platform is deemed to deliver goods and, as usual, not the underlying sellers. This makes the collection of VAT in e-commerce simpler and more efficient.
In terms of VAT, the performance in digital platforms (such as trading platforms or online auction sites) takes place between the seller of a product and the (mainly private individual) buyer. The seller must then inquire who should pay the VAT and whether it is domestic or foreign VAT. Under the new rules, it is assumed that the goods are delivered to the private individuals not by the actual seller but by the platform. However, the new rules only apply if the platform actually facilitates the delivery. The delivery can be facilitated for goods originating in the EU as well as outside the EU. Both situations lead to a different treatment of VAT.
It is important for platforms, and entrepreneurs which trade via platforms, to inquire in a timely manner about the consequences the changes as from 2020 present them.