The New EU VAT Rules Came into Effect

From July 1, 2021, EU VAT reform measures I

Suppliers from non-EU countries only need to register in one EU country, and they can declare and pay taxes incurred in all EU member countries at one time.

If the annual sales involved in a single EU sales destination country exceeds the threshold of 10,000 euros, it needs to be implemented according to the VAT rate of each EU destination country

For some sales on the platform, the platform is responsible for collecting and paying VAT

It is clear that the e-commerce platform is responsible for with holding and remitting the goods and services sold by non-EU e-commerce on the platform, which also makes the third-party platform ”be regarded as a seller” to some extent and bears more responsibilities.

EU VAT reform measures II

Cancel the exemption of import value-added tax for goods imported online from non-EU countries with a unit price of less than 22 euros. 

Two situations in which the B2C business of e-commerce platform is carried out and the deduction and payment system is applicable

The value of imported goods does not exceed 150 euros, and the long-distance cross-border transactions or domestic transactions of goods of any value by non-EU sellers.

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Post time: Aug-13-2021