EU Legislation on VAT Reporting Commencing July 1, 2021

As of July 1, 2021 new EU legislation takes effect requiring non-EU entities to charge/collect VAT on goods & services sold into the EU. These laws may apply to businesses:

  1. selling goods online into the EU (examples: Amazon, Ebay, AliExpress, similar online retailers/wholesalers)
  2. importers of low-value goods; tangible or digital into the EU: (examples: Amazon, Ebay, AliExpress, and similar retailers & wholesalers, or even digital sellers such as GoDaddy and other providers who sell digital assets such domain names, hosting services, or similar).
  3. online platforms bringing together sellers and buyers of goods and/or services in which the buying party is in the EU (examples: Shopify, Etsy, Alibaba, or similar).

Invoice Ninja is a company based in Florida, USA. It is our opinion of the new EU VAT legislation commencing July 1, 2021 is that Invoice Ninja is not required to collect VAT from our EU member base:

  1. The core Invoice Ninja SaaS product is free.
  2. Invoice Ninja is not a platform which markets/introduces sellers/buyers (examples: Shopify, Etsy, Alibaba, or similar).
  3. Invoice Ninja does not act as a webshop, sales marketplace, or transactional processor (examples: Amazon, Ebay, Shopify, Etsy, AliExpress, or similar).
  4. Invoice Ninja does not create sales or revenue from any actions taken by users within their Invoice Ninja accounts core functionality (for example, users creating quotations or invoicing their own clients, etc…).

We are evaluating the EU requirements as it comes into effect and will update our policies for EU users if/when it becomes necessary/required.

Questions or comments? Please contact