Everything you need to know about the critical changes applicable to U.S. vendors from July 1st, 2021
New e-commerce VAT regulations in Europe
Adopted at the European level in 2017, the new e-commerce rules profoundly transform and modernize the regime applicable to cross-border online commerce. The existing rules have become obsolete in the face of the increasing digitalization of exchanges between sellers and consumers. Initially scheduled for January 1, 2021, its application has since been postponed to July 1, 2021.
The new rules not only relate to intra-EU e-commerce but also to sales from non-EU vendors to EU based customers (BtoC). U.S. vendors may consequently be required to register for VAT purposes in the EU, pay import VAT & duties and/or charge local VAT to their customers. The new rules also concern sales made through or thanks to online market places.
There are critical business decisions to be made in relation to:
- The new requirements for U.S. vendors
- The choice of the country/countries where they want to import goods manufactured outside the EU
- The best option between the various new regimes created
Renaud Roquebert Lawyer, Managing Partner of LightHouse LHLF, Paris – Lyon – San Francisco.
Renaud has been a specialist in international taxation for over 25 years. Before creating LightHouse LHLF, Renaud was part of the team at PriceWaterhouseCoopers (PwC) in France. He also joined PwC in Luxembourg, Belgium and the United States (where he has lived and worked several times for a number of years, in the SF Bay Area). He assists its clients in solving a wide range of tax and organizational strategy issues. In addition, Renaud regularly advises boards of directors on development issues.
LightHouse LHLF is a law firm. It is a reference firm for international and global trade operators. LightHouse LHLF shares with its clients the reality of their daily life, despite the complexity, confusion and uncertainty of the present times. LightHouse LHLF stronglybelieves that a great future lies ahead of us, and helps its clients to realize their most ambitious projects. The firm counts amongst its clients companies of all sizes and any industry (CAC 40, SMEs, Start-ups, Family Groups, and a great numbers of tech and e-commerce companies). It provides both strategic and operational advice adapted to the size, the working methods and the expectations of its clients.The firm assists its clients in dealing with their legal, tax and customs issues. In its capacity, LHLF is involved in advising its clients on the following topics:
- VAT
- Customs duties, Customs clearance procedures & supply chain
- Corporate Income Tax
- Transfer pricing
- Wealth taxation
- And legal issues in relation to the tax items listed above