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As part of the so-called "Digitalpaket", the introduction of a new VAT system with far-reaching changes for cross-border online trade with consumers is being driven forward at EU level.

As of 01.07.2021, in B2C distance selling (transactions with end consumers), the previously applicable VAT delivery thresholds in the EU will be abolished and tax amounts will be owed directly in the country of delivery.

The so-called "distance selling regulation" will then apply.

From this point on, cross-border deliveries of goods to non-entrepreneurs will be taxable in the destination member state, and the corresponding amount of VAT will be payable there.

This means, for example, that as of 1.7.21, 20% VAT will be shown on invoices for deliveries to France, and 25% VAT will be shown on invoices for deliveries to Italy. The recipient in Italy therefore no longer benefits from the 19% VAT rate in Germany.