Overview of the VAT changes for e-shops up to 2021. How will e-commerce be affected?

If you sell goods as an e-shop to other EU member states, you need to track payment receipts in each country. If the turnover is higher in another country (e.g. Slovakia), you need to register for VAT File two notices in two different states.

Therefore, as part of the simplification of the fulfillment of sales tax obligations, a special regulation of administrative leeway for providers of selected functions will be introduced. This mode is also known as Mini One Stop Shop (now “MOSS”) as of 1.7. 2021 OSS renamed.

What is a single point of management (OSS)?

It’s an electronic system Eases VAT obligations For people selling goods or services within EU countries. OSS allows you to electronically register for VAT in one member state for all distance sales across the EU. As an entrepreneur you can avoid VAT registration in more than one member country.

In the Czech Republic, the South Moravian Tax Office has local responsibility for MOSS (tax administrator). From an administrative point of view, this is possible Choose specific methods What is relevant to his situation and transactions:

• OSS within the EU,
• OSS for non-EU companies,
• OSS for imports into the EU.

The one store shop rule allows taxpayers To cumulate all reporting obligations in a country of the European Union With a unique new tax number for each individual Administrative Regime (OSS). The tax authorities of the member countries will then redistribute the VAT.

So this system will protect Espers from VAT registration in many EU countries. At the same time, all services are made available to the end consumer – non-entrepreneur – through this regulation.

Abolition of the VAT exemption for the import of small items from abroad

Arm the espers! Do you buy goods from abroad? Parcels from China will be more expensive for you. you are now Parcels from abroad up to 22 euros Exempt from VAT. However, in December 2017, the Council of Europe approved a new tax package that would result in the removal of this benefit. An amendment will come into force by July 1, 2021, which will abolish the VAT exemption for small consignments from third countries.

Need vendors that use drop shipping Find out more about distribution outside the EU.

Customs and VAT Restrictions

The following regulations apply until the end of July 2021:

• Exports up to 22 euros – without VAT and without customs.
• Exports from 22 euros to 150 euros – without VAT and customs.
• Exports over 150 euros – VAT and duty (customs declaration required).

From July 1, 2021, however, goods up to 22 euros will also be subject to VAT.

In addition to abolishing the VAT exemption, the change also introduces the need to represent the carrier in customs transactions, which will cost up to CZK 200.

Chinese e-shops react flexibly to the new introduction of VAT and customs procedures. Customs procedures can be avoided By opening a warehouse or store. Chinese e-shops are opening new warehouses and brick-and-mortar stores across Europe, eliminating the cost of customs duties.

Changes in the movement of goods through the electronic interface

An electronic interface operator is a person who provides goods or services through an electronic interface. This is an electronic marketplace, portal or other website. This can be, for example, a service from Uber, the delivery of goods from Amazon or the placement of accommodation via the Airbnb platform.

The new rules also apply to operators of online operating systems. This contains Obligation to keep records of all transactions taking place on these sites. These must be kept for 10 years for sales tax purposes.

New rules were introduced to determine the place of performance – the purpose of the new rules in e-commerce Reducing tax fraud.

What will Brexit bring?

Regarding the use of VAT, On January 1, 2021, the United Kingdom became the third country. For example, the same policy applies to that country when trading with the United States, China, or Russia. The only exception is the movement of goods between EU member states (hence the Czech Republic) and Northern Ireland, where the rules applicable to EU member states continue to apply.

Goods are now being shipped from the UK to EU countries Subject to customs supervision And can be Subject to customs restrictions 952/2013 of the European Parliament and Council Regulation (EU) of October 9, 2013 on the Union Customs Code.

On the other hand, the UK government imports goods from the EU into the UK Shifts administrative obligations for products of animal origin out of the EU Within six months to 1 October 2021. By 1 January 2022 it is also deferring body customs restrictions at borders (when entering the UK). For other items, the postponement of customs declaration documents has been extended until January 1, 2022. The reason is the attempt not to burden companies with additional management during epidemics, but the lack of physical infrastructure for border controls.

Kristana Sebekova, Zápecová Finance sro

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