The rise of e-commerce requires supply chain actors to adapt and innovate in new and different ways, responding to demands from online marketplaces, businesses, traditional retailers and consumers. The VAT reform will revolutionise the way Europe trades. The new legislation, coming into effect on 1 January 2021 will make significant changes to the supply chain and will impact all economic stakeholders. It will allow foreign entities to register in the EU for this particular scheme. It will start new revenue streams for the EU and the Member States whilst increasing protection of the EU economy in terms of revenue protection and counterfeit. All business-to-business (B2B), business-to-consumer (B2C) and business-to-business-to-consumers (B2B2C) transactions will change. The new VAT rules for e-commerce could have a significant impact on industry and consumers both within and beyond EU borders. If implemented correctly, they could help modernise e-commerce and deliver substantial benefits for Member States, their businesses and consumers.
26th October 2020