HMRC has published an explanatory memorandum which explains EU proposals for reform of key VAT and customs union instruments to address concerns around movements of goods facilitated by e-commerce platforms. The reforms would include changes to the following:
The Principal VAT Directive (2006/112/EC): to remove the €150 per consignment limit for online marketplace liability from 1 March 2028. This is linked to the customs reforms (below) with the intention that all e-commerce operator sales into the EU (regardless of value) will have both VAT and customs duty paid for by the e-commerce operator rather than the individual consumer (see Com(2023) 262);
The Union Customs Code (Regulation (EU) No 952/2013): to establish an EU Customs Authority, grant powers to the Commission to adopt secondary legislation for specific areas of the UCC and establish customs duty reporting by online marketplaces. A new EU Data Hub would be phased in over 15 years to manage customs declarations and other administration in one place rather than in individual member states, aiming to reduce costs (see Com(2023) 258); and
The Combined Nomenclature (Regulation (EEC) No 2658/87) and Customs Duty Reliefs Regulation ((EC) No 1186/2009): to introduce simplified tariff treatment for B2C distance sales of goods, and remove customs duty relief for imports of goods with a value not exceeding €150 (see Com(2023) 259).
The European Commission is expected to consult with the UK on the potential implications of the reforms for Northern Ireland.
HMRC has published an explanatory memorandum which explains EU proposals for reform of key VAT and customs union instruments to address concerns around movements of goods facilitated by e-commerce platforms. The reforms would include changes to the following:
The Principal VAT Directive (2006/112/EC): to remove the €150 per consignment limit for online marketplace liability from 1 March 2028. This is linked to the customs reforms (below) with the intention that all e-commerce operator sales into the EU (regardless of value) will have both VAT and customs duty paid for by the e-commerce operator rather than the individual consumer (see Com(2023) 262);
The Union Customs Code (Regulation (EU) No 952/2013): to establish an EU Customs Authority, grant powers to the Commission to adopt secondary legislation for specific areas of the UCC and establish customs duty reporting by online marketplaces. A new EU Data Hub would be phased in over 15 years to manage customs declarations and other administration in one place rather than in individual member states, aiming to reduce costs (see Com(2023) 258); and
The Combined Nomenclature (Regulation (EEC) No 2658/87) and Customs Duty Reliefs Regulation ((EC) No 1186/2009): to introduce simplified tariff treatment for B2C distance sales of goods, and remove customs duty relief for imports of goods with a value not exceeding €150 (see Com(2023) 259).
The European Commission is expected to consult with the UK on the potential implications of the reforms for Northern Ireland.
