Tax increaseIn effectVAT and consumption taxesNational

EU e-commerce VAT package: VAT from the first euro on small imported parcels and one-stop shop

Article 147 of the 2020 Finance Act transposes Directives (EU) 2017/2455 and 2019/1995: removal of the VAT exemption for low-value imports (€22), new rules for intra-EU distance sales and sales of imported goods, one-stop shops for VAT returns (OSS and IOSS), and liability of some online platforms that facilitate sales. Planned for 1 January 2021, entry into force was postponed to 1 July 2021 by Article 51 of the 2021 Finance Act.

Measure originators

InitiatorGVT

Bruno Le Maire

Gouvernement

InitiatorGVT

Gérald Darmanin

Gouvernement

🇪🇺

European origin

Directive/Regulation

Directives (UE) 2017/2455 du 5 décembre 2017 et 2019/1995 du 21 novembre 2019

Context

Transposition du paquet TVA sur le commerce électronique

Transposition date

1 July 2021

View European directive

Impact on public finances

No official estimate found for this measure.

Effective date

1 July 2021

Measure impact

Since 1 July 2021, online purchases of goods imported from outside the EU are subject to VAT from the first euro (end of the €22 exemption); distance sellers and platforms declare and pay VAT of the country of consumption through a one-stop shop, notably for consignments worth up to €150.