VAT: New Rules for your E-commerce

The European Union (EU) has new rules on VAT charged on intra-community e-commerce. Measure already in effect!

With the growing recourse to E-commerce, that pandemic has only accelerated, it is intended to ensure more effective and adequate taxation in terms of VAT and simplify the tax collection mechanisms for companies.

What changes?

VAT exemption for small-value sales is eliminated

It was extinguished to VAT exemption to inferior goods a 22 Euros, following the rules defined above. On the other hand, the remittances that do not exceed 150 euros benefit from a special regime.

End of VAT exemption on extra-Community purchases up to 22 euros

If, until now, you could benefit from VAT exemption on extra-Community purchases up to 22 euros, now, all extra-Community purchases, regardless of their value, are subject to VAT.

Who does it apply to?

To all EU and Non-EU companies that sell goods or services online to European individuals (B2C), regardless of the sales channel used.

• Websites / Online Stores
• Marketplaces (Amazon, Ebay, AliExpress, Fnac, Darty, CDiscount, etc…) 
• Social Media (Facebook, Instagram, Snapchat, Twitter, tiktok)

VAT taxation is now in the countries of destination

Elimit the different limits established for each country. Taxation of sales will be made in the member state to which it will be sent the product. The exception will be for companies whose sales do not exceed 10 000 euros.

Goal

• Simplify VAT formalities that weigh on companies;
• Better fight fraud;
• Ensuring fair competition between European and non-European companies.

What changes in your invoicing program? How to prepare your online business? What is the One Stop Shop System?

Talk to us, we have everything ready to help you. Schedule a VAT audit of your E-commerce.