European VAT regulation (Directives 2017/2455 and 2019/1995)
About this article
This article contains information on the new rules introduced by the European Union (EU) regarding value-added tax (VAT) on cross-border ecommerce transactions, valid from 1 July 2021.
Summary
According to the European Commission's (EC) website, businesses "operating electronic interfaces such as marketplaces or platforms will, in certain situations, be deemed for VAT purposes to be the supplier of goods sold to customers in the EU by companies using the marketplace or platform. Consequently, they will have to collect and pay the VAT on these sales."
Impact
Mirakl-based marketplaces
As a result of Directives 2017/2455 and 2019/1995, the order process and communication between marketplaces and merchants was modified so that marketplaces can accurately gather information regarding the place of origin of goods (i.e.: the country from which the goods are shipped).
From 1 July 2021 on, it is the responsibility of the merchant to indicate the accurate country of origin of the shipment for each order in the Mirakl back-end. Merchants must map in the Country shipped from attribute, as indicated in the screenshot below. A Mirakl guide pops up to help merchants throughout this process, so they can map the attribute correctly.
Mirakl back-end: Country shipped from.
In order to properly integrate the price, be aware that it can be interpreted as tax-included or tax-excluded (depending on the operator choice). Also, note that a tax can be labeled as 'proportional to amount' or not. Make sure to identify the right information to refund the right amount.
External links
1. Explanatory notes on VAT ecommerce rules (PDF).
2. EU Modernized VAT Regime: Express Logistics and Transportation Companies Get Prepared.
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