Council of the EU confirms postponement of the e-commerce VAT package

E-Commerce VAT Package delayed to 1 July 2021

EU Council formally agreed to postpone by 6 months the entry into force of the VAT e-commerce package – as of 1 July 2021 instead of 1 January 2021.


On 22 July 2020 the Council of the European Union formally agreed to postpone by 6 months the scheduled entry into force of the VAT e-commerce package – as of 1 July 2021 instead of 1 January 2021. Such followed the preliminary agreement reached on 24 June 2020 to postpone same and is a measure taken in response to the implementation delays encountered by tax authorities and businesses as a result of the COVID-19 crisis.

While the Netherlands and Germany have requested the European Commission to consider a further extension beyond 1 July 2021, Malta, Austria, Bulgaria and France expressed a preference that no further extensions be adopted.

In Malta, on 2 June, a set of 8 legal notices were published which introduce the necessary amendments to the Maltese VAT Act to implement such package. The legal notices will enter into force on a date to be announced in the Government Gazette.

The 6-month extension gives Member States and businesses more time to get their data, systems and processes ready for these major changes.

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