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The European Commission has announced that due to the effects of the coronavirus on member states, the rules set out in the new VAT E-commerce package will not be applied until 1 July 2021. The package is designed to facilitate cross-border trade across the EU and was originally expected to take effect from January 2021. The Commission has also proposed that member states will be given an additional three months to meet certain filing deadlines and exchange information on financial accounts.

J&P Comments

It is understandable that the introduction of the VAT E-commerce package has been delayed by 6 months as the coronavirus has created many practical difficulties for businesses across the EU and they will need extra time to adapt to new VAT rules.