The e-commerce package shall enter into force from 1 January 2021. The goal is to better ensure taxation in the destination state. At the same time, the simplifications for businesses (One-Stop-Shop), which avoids a VAT registration in every destination Member State, shall be extended.
- In general, distance sales within the EU as well as services provided electronically to non-businesses in other Member States should be taxed where the transportation of the goods ends or where the recipient of the electronic services is resident. The distance selling threshold will be abolished and, as a simplification, supplies of goods or services up to a total revenue of EUR 10,000 per year will be taxed at the place of origin of the goods or where the supplier has established his business. To simplify the procedure, the One-Stop-Shop (OSS) will be extended to include all intra-EU distance sales and all services provided by EU businesses to non-taxable persons resident in another Member State.
- The tax exemption for the import of small value items with a total value of EUR 22 or below will be abolished. A comprehensive new distance selling regime shall be introduced. In accordance with this, import of goods with a value up to EUR 150 will be exempt if a VAT identification number is provided in the import declaration and the supply of goods is taxed under a special regime (Import One Stop Shop – IOSS). The IOSS will apply to all services provided by a non-EU business to non-taxable persons within the EU.
- Where a taxable person facilitates, through the use of an electronic interface (such as a marketplace, platform, portal or other similar means), distance sales of goods imported from third territories to a non-taxable person, the taxable person who facilitates the supply shall be deemed to have received and supplied the goods himself. The interface will therefore owe the VAT for the distance sales themselves, whereas the deemed supply of the supplier to the interface shall be tax exempt. Tax point for the supply will arise at the end of the month in which payment was received.
For more Information please contact:
Christine Weinzierl, Partner, PwC Austria
Tel. +43-1-501 88-3630
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