Idioma: EN | PT
The European Union (EU) will have new rules on VAT charged in intra-EU electronic commerce in the second half of the year. With the increasing use of e-commerce, which the pandemic has accelerated, the intention is to ensure a more effective and adequate taxation in terms of VAT and to simplify the tax collection mechanisms for companies. At stake are not only distance selling, but also the provision of services and certain deliveries of goods.
These measures aim to lower the costs of companies inherent to the e-commerce activity, both through a lower tax bill and expenses saved in administrative procedures. The estimate of the European authorities points to the two billion euros of global savings in the business fabric at Community level.
As for the requirements in terms of what must be registered and subsequently communicated to the tax authorities of each member state, digital platforms and other e-commerce facilitators are now obliged to keep track of transactions that have been carried out through them and to communicate them to the tax administration.
In this way, they are seen as suppliers in terms of sales made through them, and, as such, are responsible for the collection of VAT on behalf of the State. A taxable person who facilitates, via electronic platform, distance selling of imported goods in shipments of up to 150 euros will be considered to have acquired and transferred such goods.
These changes cover all companies in the EU and outside the EU that sell goods and services online to European individuals, regardless of the sales channel:
- Exclusive WEB sites;
- Market-Places (Amazon, Ebay, AliExpress, Fnac, etc…);
- Social Networks (Facebook, Instagram, Snapchat, Twitter, etc…).
For most transactions, VAT on sales to final consumers will be taxed in the Member State of destination, that is, invoices issued by the Portuguese taxpayer to a consumer will have to refer to the VAT rate in force in the country of destination of the goods.
Small businesses - micro or start-up companies - headquartered in a specific member state, but making occasional sales to other markets, will not have to declare VAT in those countries. This VAT due will be paid to your country's tax administration, which will then send it to the respective member state. However, the total value of sales per year cannot exceed 10 thousand euros.
Companies operating in e-commerce will no longer have to register in each member state that is a target market for their products. If they adhere to the VAT one-stop shop, it will be there that they will register and face all the declarative and tax obligations attributed to them. This means, for example, that companies supplying goods imported from third countries to European customers are now required to submit a single VAT return for all distance sales.
Merchants from third countries who do not opt for the VAT One Stop Shop regime may resort to a special system for charging VAT on imports. In this case, VAT will be charged to customers by the customs declarant, who will then pay the customs authorities. The advantage of this system is that it is no longer necessary to pay VAT on imports directly at the border. Remittances that do not exceed 150 euros benefit from a special regime.
Shipments with a value of 22 euros or less, coming from third countries and destined for a European Union country, were exempt from VAT. With the new legislation coming into force in the summer, VAT will be charged for these operations.
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