New regulations for online trading
The new VAT regime for e-commerce
From July 1, 2021, the VAT rules for online trade in the EU are to change, the so-called EU package.
Thus, the following new VAT measures apply to sellers and marketplaces
in e-commerce:
The One-Stop-Shop VAT return
The One-Stop-Shop VAT return is to be introduced uniformly in the EU for distance sales so that sellers do not have to register anew in each member state. Sales will then only be based on a tax declaration and sellers or marketplaces that are considered suppliers will only have to register in one EU state. However, a VAT declaration must also be drawn up within the seller’s own country. The OSS return will be quarterly and must be filed on the same day as the traditional VAT return. Small businesses that sell less than 10,000 euros per year of foreign B2C goods and services do not have to complete an OSS return. Generally, this tax return is not mandatory and sellers can still continue to use a foreign VAT registration.
Import OSS VAT return
At the moment, the rules are such that online sellers can import goods directly to the customer into the EU free of VAT if the value of the delivery is 22 euros or less. This regulation will be abolished as of July 1, so that all imports will be subject to EU VAT. The so-called Import One-Stop-Shop (IOSS) will then apply as a declaration with which sellers outside the EU must report deliveries worth a maximum of 150 euros. Again, all that is required is to register for the IOSS in an EU country. This declaration can also be used by EU sellers selling goods to EU customers located outside the EU.
New marketplace VAT obligations
In addition, new regulations apply to large online marketplaces. This is because VAT on goods sold from third countries to consumers in the EU via online marketplaces must be paid.
Summary regulations:
Advantages at a glance:
Which countries are implementing the regulations?
See our news articles for more information on individual countries implementing the regulations.
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Muzaffer Havcarci
INPOSIA e-Invoicing-Specialist
