The VAT changes that will come into effect as from 2021 are part of a wider EU VAT Action Plan which spans a number of years and through which material changes are made to VAT law as we know it.
The session will start off by giving an introduction of the EU VAT Action and will explore on a high-level basis the changes already introduced into domestic law as part of the said Plan such as the 2020 ‘Quick Fixes’ and the changes envisaged by the EU up to 2025. The session will then focus on the VAT changes that will come into effect during 2021, which changes can be summarised as follows:
- The VAT treatment of sales of goods to non-business clients with the EU including the introduction of the One-Stop-Shop Mechanism;
- The VAT treatment of goods from non-EU countries including the introduction of the Import One Stop Shop mechanism;
- The VAT treatment of supplies provided through platforms when these are deemed sellers of the goods and the implications if and when they are deemed sellers of the goods;
- The VAT compliance associated with the B2C sale of services to consumers within the EU
For each of these aspects, the presenter will explain the VAT treatment of particular transactions under current VAT rules and will compare and contrast the current VAT treatment of these transactions with the VAT treatment of the same as from 2021. Examples will be used throughout the session. Practical limitations and areas requiring further guidance will also be highlighted and discussed.