As from 1 July 2021 the new provisions of the “VAT e-commerce package” enter into force.
The new rules were mainly introduced by Articles 2 and 3 of Directive 2017/2455/EU and by Directive 2019/1995/EU and have been implemented at national level by Italian Legislative Decree 83 of 25 May 2021, published on Italian Official Journal no. 141 of 15 June 2021.
Most recently, by Order no. 168315 of 25 June 2021, the Italian Revenue Agency approved their implementing provisions concerning, among other things, the procedures for participating in the new special OSS and IOSS schemes introduced by the reform.
The provisions of the VAT e-commerce package aim to:
- simplify VAT obligations for taxable persons who carry out cross-border transactions (mainly using electronic means) with private consumers in the EU, with specific regard to small entities;
- combat fraud and ensure that VAT is paid correctly in the Member State where the transactions are considered to take place;
- remove elements that distort competition between EU and non-EU operators.