Online B2C deals to EU to be subject to value added tax from July 1
Online B2C transactions to Europe will be subject to value added tax (VAT) from July 1, the Vietnam Trade Office in Belgium and European Union (EU) has said.
According to the European Council, any online sellers or e-commerce platforms must apply for business registration in an EU member state if they want to sell products to the EU.
Their deals will be subject to VAT applicable in countries where buyers reside.
With the new rule, if the seller registers for Import One Stop Shop (IOSS) of each member state, consumers will know the final prices, inclusive of VAT. If unregistered, online buyers must pay VAT when goods are imported to the EU.
The office suggested that online sellers should seek a partner in the EU to handle VAT filing and payment procedures in line with regulations.