The topic of this Final Paper was chosen because of the current changes in the field of distance taxation. Distance selling was updated in Europe and the world during the Covid 19 pandemic, and accordingly the tax treatment of this form of trade had to be updated and adapted to new ways of doing business. For this reason, on 1 July 2021, new changes were introduced in line with the European directive and are explained in more detail below.The changes introduced in July 2021 relate to the previous exemption from import VAT for small value shipments. This model was initially introduced in order to reduce the administrative burden of the customs administration. On July 1, 2021, significant changes were introduced into the Croatian tax system, primarily related to the abolition of exemptions for small value shipments. The European Commission predicts that the abolition of this exemption will subject an additional 150 million shipments a year to tax treatment, which has a major impact on the revenues of European countries. Until the introduction of the new model, online businesses had to register in each Member State in which they operate for VAT purposes, which will no longer be the case but will be able to register electronically in one place for all their taxable shipments. The paper also explains the advantages and disadvantages of these new changes as well as what they bring in the future. Information and communication technologies affect the modern economy and the economy from different aspects, accordingly, one chapter of the paper is dedicated to the functioning of distance selling and platforms that enable the functioning of this modern form of shopping. Given that value added tax is the most generous and present in modern tax systems, most of the work is dedicated to this particular tax form. The changes introduced this year are included, as well as the basic provisions of the VAT Act. At the very end of the paper, there is a conclusion and predictions of the authors for the functioning of distance sales taxation in the future.