EU VAT e-commerce package effective since 1 July 2021
Do you sell goods imported from outside the EU to EU-based consumers? Have you been applying, up until now, the VAT exemption for consignments valued at €22 or less? Do you sell your goods to consumers from other EU countries?
Have you exercised the option of not registering for VAT in other EU countries due to not exceeding the exemption threshold? Do you provide telecommunications, broadcasting, or electronic services to consumers from other EU countries?
Are you a carrier, courier delivering EU and non-EU shipments? Do you operate an e-commerce platform selling goods to EU-based consumers?
If you’ve answered yes to any of the above questions, please continue reading.
Starting from the 1st of July 2021, the EU VAT e-commerce package has come into force in all EU countries.
Please find below the three main changes that have been implemented in Poland:
Sales from Poland to consumers from other EU countries (so called EU intra-community distance selling):
(i) VAT according to local rates of the consumer's EU country (B2C - business to customer) and the obligation to register as soon as the threshold of EUR 10,000 (PLN 42,000) is exceeded (until now, higher thresholds existed individually for mail-order sales in each EU country)
(ii) Simplified VAT reporting by having to register in one EU country only - the so-called country of identification - and applying the One-Stop-Shop (OSS - payment of VAT due on sales to the EU in the country of identification) mechanism to:
• EU intra-community distance sales (WSTO),
• telecommunications, broadcasting, or electronic services ,
• certain business-to-consumer (B2C) services where the place of supply is within the territory of a Member State (e.g., accommodation services, admission to cultural, sporting, trade fair and exhibition events, short-term vehicle rental),
• certain supplies of goods in a Member State conducted by electronic interfaces (marketplaces) facilitating such supplies
Sale of goods imported from outside the EU to EU-based consumers (SOTI - distance selling of imported goods):
(i) VAT charge on shipments from outside the EU regardless of the value of the shipment (removal of the EU-wide VAT exemption for consignments valued at €22 or less)
(ii) Simplified VAT reporting for import consignments valued up to €150:
• IOSS (Import One-Stop-Shop) procedure: VAT included in the price of the goods as specified by the seller/electronic interface (marketplace), whereas import of goods is exempt form VAT. Obligation to appoint a VAT intermediary for the purpose of applying the IOSS procedure for non-EU sellers.
• Simplified procedure for postal operators and courier firms: VAT may be collected from the recipient of the goods by the customs declarant (e.g., the postal operator, courier firm) who shall then settle the collected amount with the customs authorities;
If none of the above-mentioned procedures are applied, import VAT shall be collected subject to standard customs procedures.
Sales through online (e-commerce) platforms
Imposition of a VAT obligation on taxpayers who facilitate, by means of an electronic interface (e.g., an e-commerce platform), the supply of goods and sales to EU consumers under certain conditions. This means that such a platform, just like any other VAT taxpayer, shall be obligated to settle VAT and fulfill other obligations (e.g., regarding invoicing, declaring, and recordkeeping) in relation to its "fictitious" B2C supply.
Should you have any questions concerning the changes listed above, please do not hesitate to contact us.