EU VAT system, Quick Fixes

Quick fixes, VAT reduction and changes in online trade 2021

With the quick fixes, an interim solution came into force in January 2020 to unify and improve the VAT system within the EU. The new regulations on consignment stocks, chain transactions and intra-Community deliveries have already been in force for six months, and applications are now available to help with their implementation.

For example, ClearVAT presented its tool CHECKVAT for checking VAT identification numbers (VATIN) at the AWB webinar. Since the tax exemption for intra-Community deliveries has been more strictly regulated, the supplier is now responsible for ensuring that the customer's VATIN is valid at the time of delivery. Otherwise, the tax exemption does not apply. With CHECKVAT, ClearVAT offers a complete solution for the automated verification of VATIN, which enables suppliers to validate several customers at the same time and archive the results for later revision.

The second part of the webinar revolved around the Second Corona Tax Assistance Act, including the VAT changes from 1 July 2020. The reduction for six months, which was surprisingly decided by the legislator, poses a number of challenges for traders: these include the correct declaration of the advance VAT return, the significance of the time of performance of the turnover and the special features of the exchange of goods.

The AWB online session ended with an outlook on the changes in e-commerce 2021. The reforms which have now been postponed to July 1, 2021, include the planned introduction of a one-stop shop for the VAT registration of distance sales and the abolition of the exemption from customs duties of up to 22 euros for goods from third countries. These topics will be explained in detail in another webinar.

We will be happy to keep you informed about the next webinar dates. Simply send us an e-mail.

ON TOPIC

16.02.2021

What companies can learn from the Brexit customs misery for their own customs process

The United Kingdom (UK) was a member of the EU for 47 years. It left the union on 31 January 2020. After a transition period of just under a year, the UK's participation in the EU single market and customs union also ended on 31 December 2020. Brexit has shown what can happen if companies do not establish a functioning customs management system: Delivery problems, high costs, frustrated customers. To prevent this from happening again across the EU, it is important to be well prepared for the new customs regulations from 1 July 2021.

21.01.2021

Cross-border e-commerce: good opportunities in foreign markets

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04.01.2021

VAT cut ended in Germany / eClear keeps shop systems up to date

From July to December 2020, the German government had reduced VAT to 16% and 5% respectively. On January 1, 2021, Germany reverted to the previously applicable rates of 19% and 7%. eClear keeps merchant's shop systems in the EU 27 up to date with its automation solutions for tax compliance.

NEWS

04.03.2021

Customs rules: New small-value regulation from 1 July 2021

The global mail order business is currently flourishing. For companies that source their goods from non-EU countries or ship them there, it is therefore all the more important to familiarise themselves with the provisions of the new customs regulation in good time and to align their processes accordingly - otherwise they run the risk of losing customers. In particular, the lowering of the threshold value for import duties requires special attention here.

28.01.2021

New distance selling regime: The changes regarding customs for low-value consignments

From 01 July 2021, new distance selling regime for low-value consignments of goods will come into force, replacing the previous mail order regulation or delivery threshold regulation. This article explains the changes regarding customs in goods trading when importing into the EU.