The rules have changed in the digital trade of goods and services between companies and individuals within the European Union.
The new rules will essentially affect online entrepreneurs, online platforms, or digital marketplaces, postal operators, messaging and transport companies, and of course EU consumers.
The final consumer will not notice any change in how they make the transactions, but they will have greater security in making them.
The main changes are;
1- It is unified in a single threshold of up to 10,000 euros. The VAT of the state in which the transaction is made shall be applied below this VAT.
Where an undertaking exceeds the threshold of Euros 10,000 in sales of goods to another MS, it shall apply the VAT on the destination MS.
2.- From EUR 10,000, entrepreneurs selling remote online goods and providers of TRE services (telecommunications, broadcasting or television and electronic services) shall pass on VAT from the Member State where the buyer is located.
3.- VAT exemption disappears for low-value goods, the threshold of which was EUR 22 and which will now be subject to tax.
4.- An optional special scheme is established for distance sales of goods imported from third countries to EU individuals, not exceeding EUR 150, which will allow such operators to declare and enter VAT through a system called “single-stop-shop” or IOSS (Import One-Stop-Shop).
5.-If they do not use IOSSs, they can always use a special VAT payment modality that will allow postal operators, courier and transport companies to declare and enter in a simplified form, on a monthly basis, the import VAT that they must collect from buyers.
The aim of all this regulation is to unify criteria, combat tax fraud and simplify and facilitate operators in fulfilling their obligations.