Timely introduction of EU VAT rules on e-commerce serious challenge to Tax and Customs Administration

In a letter to the House of Representatives, the Netherlands Court of Audit writes of its concerns that new EU VAT rules on the sale of goods and digital services to private individuals will not be introduced on time.

The new EU rules on cross-border e-commerce come into force on 1 July 2021. The Dutch Tax and Customs Administration, however, has warned it will not be able to introduce them until 1 January 2022 at the earliest. If it is unable to bring the date forward by six months, the State of the Netherlands may lose VAT income. There could also be financial and logistical problems for businesses.

In response to the Court’s concerns, the State Secretary for Finance said ways to introduce the rules on 1 July 2021 and the risks of bringing their introduction forward would be studied.

The letter is only available in Dutch.