Accountants – REACT now and help SMEs adapt to new VAT e-commerce rules

The changes to the EU e-commerce rules will take effect from 1 July 2021. This factsheet provides a high-level summary of the main changes and how accountants can support their SME clients. Time is of the essence.

The rule changes will greatly affect SMEs active in e-commerce. Accountants should research the changes as soon as possible to be able to inform and support their clients. We provide sources of additional guidance at the end of the document but further, specialist advice, may also be necessary.

Depending on their business model, the changes will have profound impacts on businesses. Since accountants are SMEs’ closest advisors, many small businesses rely on professional accountants to prepare for such rule changes, and for compliance with the rules. This is particularly important during the coronavirus crisis, with many SMEs’ attention focused solely on day-to-day survival.

Main questions

• What should the accountant do? – REACT
• What types of transactions may be affected?
• What are distance sales of goods?
• What are the main changes from 1 july 2021 onward?
• Flowchart – e-commerce changes ?

Answers

Developed with the advice of DG TAXUD, European Commission, the document of Accountancy Europe " Accountants – REACT now and help SMEs adapt to new VAT e-commerce rules" offers you in a concise, but complete way, the essentials of what you need to know. Many hypertext links refer to reliable sources of information, to deepen, if necessary, your knowledge.

Source : Accountancy Europe, may 2021