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VAT change package for e-commerce from 1.7.2021
What changes in terms of VAT will take place since 1.7.2021 in the field of mail order, in the provision of digital services and in the use of platforms to facilitate online trade?
Čo v článku nájdete:
The provision of digital services (electronic, telecommunications, television and radio broadcasting services), the purchase and sale of goods over the Internet, the use of electronic platforms to facilitate sales (e.g. EBAY, AMAZON, ALIEXPRES, etc.) is nowadays, not only because of the pandemic of the rapidly developing segment. The European Union is responding flexibly to these changes in the area of VAT as part of the harmonisation of the rules of the common VAT system. By transposing Council Directive (EU) 2017/2455 of 5 December 2017 and Council Directive (EU) 2019/1995 of 21 November 2019, the Slovak legislation also took over certain VAT obligations and rights in the provision of services and distance sales of goods and certain domestic supplies. The amendment to the VAT Act in this area enters into force on 1.7.2021.
Changes in mail order sales from 1.7.2021
Since 1.7.2021, the VAT Act introduces a new concept of distance sales of goods in the territory of the European Union, replacing the original sales of mail. Distance selling of goods in the territory The EU is the supply of goods dispatched or transported by or on behalf of the supplier (including indirect interference with the carriage) from an EU Member State other than the Member State of departure of the shipment , where:
- the supply takes place for a non-taxable person, or for a taxable person or a non-taxable legal person, where their acquisition of goods from another Member State is not subject to tax on the acquisition of goods; and
- the goods supplied are not new means of transport,
- it is not a delivery of goods with installation or assembly.
Until 30.6.2011 in Slovakia, the place of delivery of goods on consignment sales is in the Member State where the dispatch or transport of goods ends only if the value of deliveries to that particular Member State exceeds EUR 35 000. Supply values shall be assessed separately by Member State. At the same time, this threshold has not been uniformly established within the EU (e.g. in Germany and the Netherlands, a limit of EUR 100 000 is set).
As from 1.7.2021, these limits for mail order sales of goods will cease and new uniform rules will apply to all EU Member States under which all VAT supplies in the country of consumption are taxed. Some relief for the small business segment is the introduction of a single limit of €10,000. Where the total value of supplies of goods sold at a distance within the territory The EU and digital services supplied to other Member States outside the State of establishment shall not exceed EUR 10 000 in the previous and ongoing calendar year, so the place of delivery shall be the place of establishment of the supplier. The supplier does not therefore have to register for VAT in each country of consumption according to the customer’s establishment and may apply VAT to such supplies to the State of establishment. If the supplier exceeds the limit of EUR 10 000 set by the supply of goods or services, he will assess the place of delivery for the goods pursuant to § 14 (2) ZVAT and for the digital service pursuant to § 16 (14) ZVAT in the new version or may decide to apply the simplified procedure if he fulfils the conditions for the specific place of delivery (MoSS mode up to 30.6.2011, from 1.7.2021 OSS regime).
From the point of view of VAT, it is always necessary to assess customer status and place of establishment when trading on the internet. Since the supply of goods or services via the Internet in the context of so-called B2B relations (simplified business relationship (Simplified relationship entrepreneur – final customer non-reacher).
Changes in special tax arrangements from 1.7.2021
Until 30.6.2011, taxable persons who provide digital services to non-taxable persons (non-entrepreneurs) established in the territory may be allowed to: the European Union, to apply the ‘Mini One Stop Shop’ (MOSS) simplified one-stop shop (JKM). The scheme is voluntary for providers and serves to facilitate the procedure for granting and paying VAT in several Member States, thereby contributing to reducing the administrative burden on taxpayers. Where this regime is used, the supplier of those services may not be registered for VAT purposes in all Member States of the European Union where he has customers, but it is sufficient for him to register in one Member State which is established for taxpayers the Member State where they are established (the so-called Member State of identification). In that Member State, it then grants and pays VAT on all services delivered within the European Union, i.e. it lodges only one so-called special VAT return via the national identification portal and pays VAT in one amount to the tax administration in the country of identification. The Member State of identification shall ensure the distribution of VAT to each Member State according to the place of consumption (customer establishment).
From 1.7.2021, the MOSS scheme is converted into OSS mode One Stop Shop (IMOSS) respectively. Simplifications under the special tax scheme (one-stop scheme) will continue to apply, distinguishing the regime for the European Union (EU) and the regime outside the European Union. However, there are some changes.
EU OSS scheme ′′ (§ 68b ZVAT) will be able to benefit from:
- EU-based service providers (only in a single country) providing services to non-taxable persons with a delivery point under Paragraph 16 of the VAT Act in other Member States where providers are not established,
- suppliers of goods at a distance from the EU territory supplying goods to customers not identified as VAT to Member States where suppliers are not established,
- electronic interface operators who, although not direct suppliers of goods, are in essence facilitating the distance delivery of goods within the territory The EU and therefore are considered as distance suppliers if the original supplier is not established in the EU. In this case, legal fiction is introduced that the platform facilitating the sale itself has received and sold the goods.
OSS scheme outside the EU ′′ (Art. 68a R & D) will only be able to use service providers established outside the EU who supply services to non-taxable persons with a place of delivery designated pursuant to § 16 of the VAT Act on the territory EU.
iOSS scheme (§ 68c ZVAT) refers to suppliers of distance selling goods imported from third countries. This is a new special scheme for imports introduced in connection with the abolition of the current VAT exemption for imports of goods of consignments of a value not exceeding EUR 22. Thus, VAT on imports of goods will in principle be subject to imports of any consignment of a commercial nature. Since consignments whose own value does not exceed EUR 150 continue to be subject to customs duties, for the purpose of making VAT collection more efficient and reducing the administrative burden for customs authorities in the EU, this new type of distance sales of goods, namely the distance sales of goods imported from the territory of third countries, is introduced from 1.7.2021. A supplier who sells goods located in the territory of third countries to customers of the European Union and makes use of this simplification scheme will be able to collect VAT from the purchaser and to grant and pay VAT through a special scheme in the Member State of identification. At the same time, imports of goods which are not subject to excise duty and whose own value does not exceed EUR 150 will be exempt from VAT under this special scheme. In this case, VAT is charged when the goods are sold (the VAT price will be displayed in the e-shop) and VAT on importation will not be paid.
Goods purchased from a supplier who does not apply the iOSS scheme will be subject to import VAT and in such cases the buyer will either be allowed to represent himself in the customs procedure of the carrier (e.g. by post) or to lodge a customs declaration itself in the customs procedure (simplified electronic form via the Financial Administration portal using the eID of the ID card with the chip and KEP by electronic signature).
Service providers and distance suppliers (originally so-called mail order) wishing to apply this simplified VAT regime from 1.7.2021 must be registered for a special adjustment of the OSS tax until 10.6.2021.
This term does not apply to digital service providers already registered for the MOSS mode valid until 30.6.2011. They will be able to report the services provided by them after 01.07.2021 under the special tax scheme One Stop Shop (OSS) without having to register with them after 01.04.2021 separately or apply for permission to apply it. After 01.07.2021, MOSS will be transformed into One Stop Shop (OSS).
The supplier who decides to apply the special scheme is bound by this Decision for two calendar years.
