A news release from WCO on 9 June advised that, from 1 July, VAT rules on cross-border business-to-consumer (B2C) e-commerce activities in the EU will change. The new rules will have major impact on customs matters –
- VAT will now have to be applied on all goods that are sold online in the EU regardless of their price – the de minimis threshold of €22 will no longer be applied.
- an electronic portal – Import One Stop Shop (IOSS) – is introduced to facilitate and simplify the declaration and payment of VAT for online sales of goods imported in the EU with a value not exceeding €150
- consumers that buy from a non-EU seller or platform that is registered in the IOSS will find that VAT will be included as part of the price that has to be paid to the seller – meaning no more calls from Customs or courier services asking for an extra payment when the goods arrive in the buyer’s home country
- special provisions provide that online marketplaces/platforms facilitating supplies of goods are deemed for VAT purposes to have received and supplied the goods themselves – as a “deemed supplier”
- new record keeping requirements for online marketplaces/platforms facilitating supplies of goods and services, including where such online marketplaces/platform are not a deemed supplier
- special arrangements for postal operators and couriers to manage sales done by sellers or marketplaces/platforms that have not registered in and do not use the IOSS – with VAT due upon import will be collected from the buyer upon delivery of the parcel
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