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EU Postpones E-Commerce VAT Package in Light of COVID-19

EU Postpones E-commerce VAT Package in Light of COVID-19

Hungary
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Due to the practical difficulties created by the lockdown measures taken against the coronavirus pandemic, the European Council has agreed that the VAT e-commerce package should apply from July 1, 2021, rather than January 1, 2021.

Under the new VAT e-commerce package, all business-to-customer (B2C) supplies of goods to customers in the EU should in principle be taxed at destination. New obligations will be introduced for online marketplaces and platforms and their business users and VAT exemptions will be removed for low-value consignments. The EU will also improve and expand its mini one-stop shop (MOSS) system, practically turning it into a One Stop Shop (OSS) applicable to

  • B2C supplies of services other than telecommunications, broadcasting and electronic services
  • intra-EU distance sales of goods
  • certain domestic supplies of goods facilitated by electronic interfaces
  • distance sales of goods imported from third countries and third territories in consignments of an intrinsic value of maximum EUR 150

The new deadline should give Member States and businesses more time to prepare for the new rules.

By Balint Zsoldos, Head of Tax, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

  • Our most valuable asset is our people. They are the engine of our business and the key to our success.
  • We push boundaries by looking for innovative solutions that can empower our clients to achieve greater results.
  • We place our experience, commitment and professionalism to your service.
  • We are driven by our vision to shape and lead the Hungarian legal market and become a first choice law firm in our practice areas.

Firm's website: http://www.kcgpartners.com