Bulgarian National Radio © 2021 All Rights Reserved

Cross border VAT e-commerce is being modernized in the EU

Photo: library

New VAT rules for e-commerce will be rolled out across the EU as of July 1 to simplify life for businesses that sell goods online, while ensuring a more level playing field with online companies outside the EU. The rules aim to reduce the administrative burden for businesses that make cross-border online sales through the introduction of a single system for declaration and payment of value added tax called One Stop Shop (OSS).

“Traders will no longer need to register for VAT purposes in the country where they sell the goods to the end user – said MEP Tsvetelina Penkova, member of the Committee of Budgetary Control at the European Parliament. – Goods and services amounting to more than EUR 10,000 can be declared by the traders and the VAT due can be paid in the member state of the purchaser. In contrast to the past, traders will not suffer any administrative burden and will not have to register in the respective member state. As for the sale of goods and services amounting to less than EUR 10,000, the VAT due can be paid in the member state of the trader.”

Moreover, the current VAT exemption for packages entering the European Union with a value not exceeding EUR 22 will be abolished. By eliminating this exemption, European businesses will be able to compete within the level-playing field.

“Meanwhile, the Import One Stop Shop facilitates the collection, declaration and payment of VAT for sellers that are supplying goods from outside the EU. Thus, the amount of VAT, laid down by the national law of the country where the goods are imported, can be paid through this online platform as well.”

The benefits of these new rules are twofold: they improve tax collection and create conditions for greater transparency and building up consumer trust. What must traders do to benefit from the One Stop Shop?

“The system is open for registration since April 1, 2021 and will be active until July 1, – specified MEP Penkova. – All traders who want to benefit from the One Stop Shop must check what documents are needed to register in the system.”

More details on cross-border VAT e-commerce can be found at the European Commission’s web site.

Written for Euranet+ by: Elena Karkalanova

English version: Kostadin Atanasov

Photo: EP

More from category

Cherry harvest season in Bulgaria has started

The season of cherries in the region of Kyustendil has already started. This Bulgarian region has gained reputation as the cherry orchard of this country. The harvest campaign is expected to continue until mid-July. There are hundreds of people..

published on 6/7/21 4:19 PM
(L to R) Finance Minister Assen Vassilev, Galab Donev and Kiril Petkov

Government revives economy with quick loans state guarantees

“A gradual transition is apparent in the country - from a closing of the economy to a revival and recovery. This is confirmed also by the level of unemployment, which as of 2 June stood at 5.65%, a drop of 37% compared to a year earlier,” Minister of..

published on 6/4/21 12:43 PM

Three Seas Initiative invests in energy in Bulgaria

The Three Seas Initiative Investment Fund (3SIIF), in which the Bulgarian Development Bank is taking part, acquired a considerable share of Enery Development GmbH, a company producing energy from renewable sources . It is in possession of 85MW..

published on 6/4/21 10:52 AM