We would like
to inform you that due to the unforeseen outbreak of the COVID-19 crisis and
its significant impact on the Member States, the European Commission has
decided to re-prioritize and reallocate resources for the implementation of the
e-commerce VAT package in order to fight against the COVID-19 pandemic.
the Council Regulation EU 2017/2454 the following amendments should have
entered into force from 1 January 2021:
·Special schemes were to be introduced
for distance selling and other services, therefore, the rules were extended,
according to which the registration Member State and consumption Member State
will provide each other information and the registration Member State will
transfer the money to consumption Member States.
·It would be determined, what kind of
information regarding the application of special schemes should be provided by
the taxable person and what kind of information should be exchanged between the
above-mentioned special scheme will be used for electronically supplied goods.
This special scheme will be available to any non-established taxable person,
which carries out distance selling to non-taxable persons in other Member
States, who will be able to choose the Member State of registration and will be
given a separate VAT registration code. We would like to note, that before the
date of entry of the above-mentioned Council Regulation, Companies which carries
out the activity of distance selling had
to register for VAT purposes in every Member State to which the goods were
supplied if they exceeded the national threshold, i.e. if the Company in
Lithuania supplies goods which exceeds the threshold of EUR 35.000 then the
Company must register for VAT purposes in Lithuania. According to the new
Council Regulation, Company’s which perform distance selling will no longer
have to register for VAT purposes in every Member State. Such Company’s will
have to submit VAT returns in their Member States by indicating the amount of
goods and/or services supplied to another Member States and will have to make
the payment of calculated VAT to the bank account which will be specified by
the Member State. In the meantime, the Member State will distribute the VAT
received accordingly to the other Member States where goods and/or services
The Council Regulation EU 2017/2454 should have been applied from 1 January 2021. However, the date of application has been postponed by the decision of European Commission to 1 July 2021.
If you have any additional questions, please do not hesitate to contact Leinonen Tax Team. Our team can provide VAT reporting, Intrastate reporting and other tax related services.
The above-mentioned information is prepared by Leinonen Tax Team.
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