1.1.1. Context of its adoption

E-commerce is changing the international business environment, including the cross-border flow of goods. While on the one hand, e-commerce facilitates access to global markets, especially for micro, small and medium-sized enterprises (SMEs), on the other hand, customs authorities around the world are faced with the challenge of finding a balance between supervision and facilitation, covering all the corresponding risks, both fiscal and of another nature. The lack of advance electronic information on postal items and the often poor quality and accuracy of data leads to ineffective and inefficient risk analyzes related to incorrect origin declarations, misdescriptions of goods and undervaluations.

The exponential growth of electronic commerce over the last decade, together with the EUR 10/22 threshold for exemption from payment of VAT , has caused Member States, as they have demonstrated some studies, significant losses of income. Furthermore, suppliers established outside the EU enjoyed a competitive advantage over Union companies, which do not benefit from such VAT exemption when selling goods on the market. only.

In order to respond to this problem, on 5 December 2017, the Council adopted the package of measures on VAT on electronic commerce which, among other things, eliminates the VAT exemption on the import of commercial goods in shipments low value (EEV) up to 10/22 EUR¹, and incorporates simplifications for the collection and settlement of import VAT [the single window for imports (IOSS) and special regimes] in the case of distance sales of goods imported from third countries or third territories by companies to consumers of the EU. These rules are scheduled to begin to apply on July 1, 2021.

¹ General observation: It is still possible to apply the VAT exemption on import based on Article 143 of the VAT Directive to imported goods provided that the relevant conditions are met. (Back)