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Six months deferment of the VAT regime application for online companies

Date

22 Jul 2020

Sections

Social Europe & Jobs

PostEurop welcomes the agreement reached today by the Economic and Financial Affairs (Ecofin) Council on the Commission's proposal to postpone certain tax rules due to the Coronavirus (COVID-19) pandemic.  In this context, the postponement by six months from 1 January 2021 to 1 July 2021 of the new VAT rules applicable to the operators (i.e. marketplaces, postal operators and express carriers) involved in the e-commerce sector is well received.  PostEurop will continue to support future Commission activities in this area with an aim for better alignment amongst stakeholders.

Members of PostEurop would like to thank the Commission for the cooperation leading to the decision to postpone the application of the new VAT rules for the e-commerce sector and for having understood businesses' predicament, already underlined, which became increasingly complicated due to the on-going COVID-19 global pandemic.  

Postal operators across Europe provide critical infrastructure and they play an essential role in maintaining social cohesion through the provision of the universal service during the current pandemic.  Many sectors including ours are heavily impacted by the pandemic in many ways.  Therefore, postal experts believe that the new deadline for the application of the VAT regime from 1 January 2021 to 1 July 2021 will benefit all the multitude of stakeholders (including marketplaces, express carriers, Member States and the Universal Postal Union) involved as they will be better aligned with the new requirements.   It also presents an opportunity for Member States which were not ready at the beginning of this year to adapt their IT systems by 1 July 2021.

PostEurop hopes that the regulatory framework, particularly the "Explanatory Notes", will be completed as soon as possible, so that all the stakeholders involved in the e-commerce sector will have sufficient time to implement their IT systems accordingly.

"Postal VAT experts offer their continuous support to the Commission's activities to modernise VAT rules for improving cross-border e-commerce and combat fraud.  Given the complexity of the existing system the six months deferment is an opportunity for a smoother transition" concludes Jean-Paul Forceville, Chairman of the PostEurop Management Board.

See also

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For more information, please contact:

Carlo Sauve
Chair of the PostEurop VAT working group
E: 
sauvec@posteitaliane.it

Cynthia Wee-Neumann
Communications Manager
T: +2 2 773 11 92 
E: 
cynthia.wee@posteurop.org

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