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New E-Commerce VAT Rules Effective July 1, EU Official Says

By Todd Buell · May 6, 2021, 11:52 AM EDT

New rules on value-added tax designed to simplify e-commerce in the European Union will take effect July 1, a top EU official said Thursday, suggesting the rules won't be delayed a second time.

Patrice Pillet, head of unit for value-added tax at the European Commission, said that all of the EU's 27 member countries have said that they will be ready for the rules when they are due to come into place in just under two months.

"The date of first of July is certain," Pillet said at an event organized by the CFE accounting group.

The rules were supposed to come into effect at the start of the year, but they were delayed by six months due to the coronavirus pandemic. The rules are designed to simplify VAT obligations for companies selling goods or services in more than one EU country.

Among other changes, the rules eliminate a VAT exemption for imports valued under €22 ($27), which the commission said was too easy for foreign companies to circumvent.

The commission said the changes would increase VAT intake in the bloc by €7 billion annually.

--Editing by Vincent Sherry. 

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