The introduction of the second stage of the VAT e-commerce package and the extensive changes were postponed to 1 July 2021 in line with the EU. The implementation into national law was carried out by the Annual Tax Act 2020.
During the implementation of the resulting change, there are far-reaching VAT changes that entail extensive adjustments for the affected companies, for example:
- The new version of § 3c UStG: The term mail-order sales will be replaced by intra-Community distance sales and expanded by new regulations concerning deliveries in which the goods are imported into the European Union from the territory of a third country
- Regulations on sales via electronic platforms – new section 3.18 UStAE
- Extension of the “mini-one-stop shop” applicable to certain other supplies into the “one-stop shop” (OSS) scheme – new Sections 18i.1, 18j.1 and 18k.1 UStAE
- Simplified import procedure with simultaneous abolition of the previous exemption for goods up to a value of EUR 22
The Federal Ministry of Finance has published a 35-page application letter on 1 April 2021, which details the legal provisions and explains them using examples.
Our series of articles on the topic explains the changes brought about by the new distance-selling regulations.
Online seminar series from 11 May 2021
The new regulations concerning the second stage of the VAT e-commerce package are extensive. For businesses affected (e.g. merchants, marketplaces), it is essential to make the necessary changes now (e.g. system changes in the online shop and ERP system, checking registration obligations). Our online seminar series, “E-Commerce Package 2021 – What to know and which rules to follow, “provides support starting on 11 May 2021. Our experts explain the upcoming changes and highlight the new VAT obligations.