E-commerce VAT: how to simplify the management of mandatory formalities?

VAT (Value Added Tax) is a mandatory tax for any business, physical or virtual. In fact, owning an online store does not exempt you from paying this tax. However, managing VAT -related formalities is not always a piece of cake, especially if you have no knowledge of this topic. In this case, it is important to find solutions to simplify the management of mandatory procedures related to VAT of your online store.

Call a VAT expert

As mentioned above, performing the formalities related to the declaration and payment of VAT online is a task that requires specific skills. Therefore, it is better to entrust this mission to a specialist in the field.

Contacting a VAT expert will allow you to comply with applicable regulations. He or she can complete your VAT declarations in the following manner within the time limits set. You are supported by a specialized VAT company such as ASD Group and can provide you with reviews optimize the management of your activities. Therefore it is a real ally for the entrepreneur that you are.

In addition, using the services of a VAT expert to perform and manage the mandatory formalities associated with this tax on behalf of your e-commerce is a solution that will give your company better credibility when you want to. seek the intervention of partners. and investors. Finally, trusting the management of mandatory VAT -related procedures with a VAT expert is the best solution for relieve you of a time -consuming task and have more time to grow your online business. In addition to saving this time, you will also have peace of mind, as you are sure to be able to properly manage your accounting and VAT declarations.

What policies apply to e-commerce VAT?

Since July 1, 2021, e-commerce VAT has changed, which has brought many changes in the field of online sales. This reform is particularly relevant to all online transactions with European customers of products from countries not in the European Union. This new regulation is also of concern all sales qualify as distance sales in European territory to B2C customers In fact, all e-merchants as well as “Marketplaces” (platforms for connecting sellers and consumers) located within the EU or not affected by this new reform.

What changes does this new directive bring to Europe?

Prior to July 1, limits for online sales were set by each EU country. Since the entry into force of the new regulation, the turnover threshold has been set at 10,000 euros when the seller is established in an EU Member State. It is important not to forget that this annual turnover threshold is the main parameter that makes it possible specify the VAT rate to be applied to intra-Community distance sales of goods made by a trader located in a Member State of the European Union to a consumer located in another Member State of the EU.

As long as this limit is not exceeded, the VAT of the merchant’s country is taken into account. On the other hand, if this threshold is exceeded, it is the VAT rate of the buyer’s country that is applied. As of July 1, 2021, this rule no longer applies. Henceforth, the limit is set at 10,000 euros in all countries belonging to the European Union. In addition, certain goods purchased online and imported into the EU are now subject to VAT of the destination country, regardless of value. In case the imported products have a value of less than or equal to 150 euros, the seller can declare and pay VAT in the online one-stop-shop when importing.

Finally, even “Marketplaces” or “facilitating” platforms can be considered liable for VAT. If you do dropshipping, that is, you are in charge of connecting consumers and suppliers in Europe, you have to pay VAT. So it’s up to you to collect this payment from your customers before declaring the products and make the payment at the one-stop shop level online in two specific cases. If the value of the products sold does not exceed 150 euros or if you are established outside the European Union.

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