European Union: Updated revenue numbers hint to a successful application of new EU VAT laws for e-commerce
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A new structure for VAT compliance is being introduced for cross-border business-to-consumer e-commerce supplies, which results in transparency for all EU-shoppers in terms of pricing and their mode of preference from 1 July 2021. By doing so, it creates a fairer and simpler tax system, and the modernization of VAT is more realistic in the field of e-commerce.
The update covers:
Launching of expanded OSS and Import OSS Introduction enables to state and relay VAT of traders’ sales of goods and services within the EU and the value of imported goods into the EU.
A VAT collection of 6.8 billion EUR due to extended OSS portals, and a VAT collection of 2 billion EUR for low-value import consignments not exceeding 150 EUR. A newly presented VAT revenue of nearly 700 million EUR is equitable to 1.4 billion EUR within a year.
Demolishing the VAT exemption applied to imports of low-value goods, which means all imported goods within the EU are subject to VAT.