New European Regulation on VAT in electronic commerce 2021
He 1 July next 2021 New measures approved by the European Union regarding VAT in electronic commerce will come into force.
There are basically three of the most important:
- Elimination of thresholds in distance sales
- The end of the VAT exemption on the importation of small shipments of low value.
- The responsibility of VAT on marketplaces for distance sales of imported goods from third territories or third countries.
In Spain, the Bill for the transposition of the two Directives of the European Union related to VAT in electronic commerce was recently approved.
In such a way that there will be a new system of taxation in destination, said in other words, in the state of the recipient and with the tax of that country. In other words, if a Spanish company invoices a company from the European Union, It will do so with the VAT rate of that destination country.
Now I will explain the three points mentioned above, of the three most important news:
- Elimination of thresholds:
It refers that the new regulation unifies the cut-off figure, Any company that invoices for a value of more than € 10,000 to other member countries must invoice it with the VAT of that destination country, filing self liquidations in your own country (single window) and it is not necessary to be registered in each country.
- The end of the VAT exemption on the importation of small shipments of low value:
Any import from a country outside the European Community will be subject to the VAT of the destination country.
The exemption of customs duties for imports of an amount less than € 150 remains the same.
- The responsibility of VAT on the marketplaces for distance sales:
As of the entry into force of the new regulations, Marketplaces will be considered sellers and will be responsible for their management when the user company is not within the European Community.