The e-commerce package will seal the e-commerce VAT

E-commerce VAT package. The objective of the package is to seal the VAT in the e-commerce and import sector, the so-called small shipments to the EU while simplifying the VAT regulations. The Polish implementation of the European solutions included in the e-commerce package will come into effect on July 1, 2021.

The e-commerce VAT package from July 1, 2021.

– During the growth of e-commerce turnover, the main thing is to adapt the law to its specificity. This is particularly important for national brokers, auction and sales portals, which often face unfair competition from outside the EU. The implementation of the e-commerce package will level the playing field between honestly operating businesses and the competition that floods the Polish market with cheaper packages. Thanks to this, honest entrepreneurs will not be eliminated from the market, comments Tadeusz Kościński, Minister of Finance, Funds and Regional Policy.

VAT e-commerce – the law

On July 1, 2021, the law of May 20, 2021 amending the law on value added tax and certain other laws, introducing new VAT taxation rules for e-commerce, provided for in the EU VAT package on electronic commerce, enters into force.

The aim is to facilitate online trade between EU countries, to seal the VAT in the area of ​​​​import, the so-called small shipments from outside Europe and to guarantee competition loyal to EU entrepreneurs.

– The new European regulations will prevent the influx of parcels to EU countries without VAT and will simplify the formalities related to online commerce between European Union countries. For example, Polish online stores, which, thanks to the new procedures, will no longer have to register separately for VAT in each country to which they ship. They won’t have to settle scores there and waste no time getting to grips with the procedures that work there – assures Deputy Finance Minister Jan Sarnowski.

Changes to VAT in e-commerce

The new regulations will lead to significant changes to the VAT taxation rules for Polish entrepreneurs operating in the e-commerce sector, making cross-border deliveries of goods and providing cross-border services to EU consumers (B2C transactions).

– The supposed huge volume of parcels that need to be cleared in the new e-commerce customs clearance model is a big challenge for KAS, but we have been working on changes in this area for many months. Following their implementation, the couriers will change the rules for submitting e-commerce shipments to KAS, but most importantly, Poczta Polska will computerize the processes on its side and declare shipments electronically for customs clearance using the AIS / e-COMMERCE system supported by KAS – informs Deputy Minister of Finance, Head of State Tax Administration Magdalena Rzeczkowska.

E-commerce VAT – what’s included?

The most important solutions included in e-commerce VAT:

  • Modification of the current model of distance selling to EU consumers by introducing intra-EU distance selling of goods (ESPO).
  • Creation of a new category for the sale to EU consumers of goods imported from outside the EU (SOTI).
  • Simplification of VAT settlement in international trade online with the use of the “one-stop shop” under the new Single Window (OSS) and Import Single Window (IOSS) procedures.
  • Introduction of a simplified procedure for declaration and deferment of VAT payments for the import of goods in shipments with a value not exceeding 150 EUR (VAT).
  • The new role of electronic interface operators (e.g. digital platforms) in settling VAT on their supplies of goods to consumers in the EU.
  • Obligation for operators of electronic interfaces to maintain new records on goods and services sold through them to EU consumers.

We recommend our publications: The most important changes in VAT and excise duty from July 1, 2021.

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