Since 1 January 2020, the solidarity for VAT payment for online marketplaces could be established following a 3-step procedure:
As of 1 July 2021, online platform operators will no longer be concerned by this measure for:
For these goods, the online platform operators will be considered as of that date as having received and supplied the goods (i.e. as buyers/resellers). Initially, these new rules were scheduled to come into force on 1 January 2021 but, due to the Covid-19 pandemic, EU Member States agreed to postpone their entry into force by 6 months. Consequently, as of 1 July 2021, online marketplaces will be subject to VAT for those distance sales.
In brief, from 1 July 2021, online marketplaces will be:
›distance sales of goods imported from third countries or territories, the value of which does not exceed €150 (no threshold requested for the overall amount of imports – see below for more details); OR
›supplies of goods within the EU carried out by taxable persons established in non-EU countries.
›distance sales of goods imported from third countries or territories, the value of which exceed €150;›all supplies of goods within the EU carried out by taxable persons established in EU countries.
In addition, please note that the distance selling regime will change according to the Directive UE/2017/2455 as of 1 July 2021 (here also, the entry into force was initially planned for 1 January 2021 but, due to the Covid-19 crisis, member states agreed to postpone their entry into force to 1 July 2021). It is important to note here that the thresh-old for distance selling, the exceeding of which leads to the localisation of the distance sale for intra-Community supply of goods in the State of arrival of the goods, will be harmonised and reduced to €10,000. This threshold will no longer be determined at the level of each Member State, but for all distance sales carried out by an operator in the European Union.
Lastly, a new category of distance selling will be created for supplies of goods dispatched from a third country to a non-VAT taxable person: distance selling of imported goods. These transactions will be subjected to a specific regime when the value does not exceed €150 (this new regime will not be concerned by the threshold of €10,000).
The Global VAT Newsletter focuses on changes in compliance duties in various EU and non-EU countries.
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