The European Value Added Tax Regime and Ecommerce

In July last year, the EU imposed VAT on any product entering Europe. However, this blanket approach is applied at the entry point (the so-called One-Stop-Shop or OSS approach). Recently our colleagues in Europe, the Ecommerce Europe (EE), published a Position Paper on the Single EU VAT Registration, anticipating the publication of a single EU VAT ID Proposal from the European Commission in 2022. The EE’s Paper builds on the entry into application of the VAT One-Stop-Shop, which is a flagship initiative of the European Commission’s work to modernise, simplify and strengthen the EU VAT system. E-shops exporting goods or services from Africa to Europe are reminded that as of 1 January 2022, the UK is no longer treated as a member of the EU’s Customs Union and that therefore products exported from Africa to the UK for further transport to the EU will be subject to EU VAT and customs duties at the UK/EU border. As many goods can be imported into the EU directly from Africa free of customs duties, EFA advises that African exporters find an EU distributor in addition to a UK distributor.