Who is affected?
Everyone in the e-commerce supply chain is affected, from sellers and marketplaces/platforms, both inside and outside the European Union, to postal operators and courier companies, customs and tax administrations in the different Member States of the European Union, including consumers.
Electronic interfaces (platforms)
The global economy and new technologies have brought enormous opportunities in commerce, especially for electronic interfaces, such as online marketplaces or platforms. To keep pace with the new trends brought about by e-commerce, VAT regulations are changing to create a simpler and fairer environment for VAT.
An electronic interface (IE) should be understood as a broad concept. An IE can be a website, portal, gateway, marketplace, platform, application program interface (API), etc.
If so, see the sections on the new special one-stop-shop schemes (OSS and IOSS) to find out what they are for, how they work, who they affect, how to register for them and what you need to do when you start using them.
From 1 July 2021, electronic interfaces such as online marketplaces/platforms will have new functions for VAT purposes in the EU :
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They may become passive subjects;
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They will have certain record-keeping obligations.
Online marketplaces/platforms must maintain records of the transactions they facilitate, regardless of whether they are considered taxable parties or not. These records must be kept for 10 years and made available in electronic format at the request of Member States.
The following figure schematically presents the information obligations of the different electronic interfaces.
For further information and in particular on the information to be retained, please refer to the Commission's explanatory notes (section 2.2).
"Facilitate" the use of an electronic interface so that a customer and a supplier offering goods for sale through the electronic interface can establish contact resulting in a delivery of goods through that interface electronically to said client.
This is reflected in the fact that the ordering and payment process is carried out by or through the electronic interface, but is not determined by the physical delivery of the goods, which the taxable person who manages the operational interface may have organized/carried out or not.
It is considered that an electronic interface does not facilitate delivery if:
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does not establish, directly or indirectly, any of the terms and conditions under which the delivery of goods is carried out, and
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does not intervene, directly or indirectly, in the authorization of collection from the client of payments made, and
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does not intervene, directly or indirectly, in the order or delivery of goods.
For an electronic interface to be considered not facilitating delivery, it must satisfy all of these conditions. Therefore, even where the platform carries out only one of these activities, it could be considered to facilitate the delivery of goods.
The electronic interface will also not be considered to facilitate delivery when it performs the following activities:
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the treatment of payments in relation to the delivery of goods;
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the listing or advertising of goods;
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the redirection or transfer of customers to other electronic interfaces where the goods are offered for sale, without any further intervention in the delivery.
The electronic interface is treated for VAT purposes as if it were the supplier of the goods and will be liable for VAT on these sales. In other words, the electronic interface that facilitates the sale is considered to have received and delivered the goods on its own behalf and the transportation of said goods is linked to the delivery made by the platform. This means that the sale of goods made by the supplier through an electronic interface to the final consumer is divided into two deliveries:
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A delivery from the supplier to the interface (operation between B2B entrepreneurs)
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A delivery of the interface to the final consumer (operation between entrepreneur and final B2C consumer)
The new rules will make it possible to:
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Ensure that VAT is paid where the consumption of goods and services occurs;
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Create a uniform and transparent VAT system for cross-border deliveries of goods and services;
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Establish fair competition between European and foreign players in the e-commerce market, as well as between e-commerce and traditional stores;
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Offer companies a simple and uniform system to declare and pay their VAT in the EU through the Single Window of the VAT (OSS) / Import Single Window (IOSS).
You are considered a taxable person if you provide:
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Distance sales of goods imported into the EU for a value not exceeding 150 euros; I
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Supplies of goods to customers in the EU , regardless of their value, when the supplier/seller is not established in the EU (both domestic supplies such as distance sales within the EU ).
To declare and pay VAT due in other Member States, online marketplaces/platforms will be able to easily register for the new special Single Window schemes.
We must distinguish:
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The delivery from the supplier to the electronic interface (considered a delivery between companies) can be:
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A supply of goods outside the EU (Article 14a, paragraph 1 of Directive VAT ).
Since such delivery occurs outside the EU , EU VAT and billing regulations do not apply.
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A supply of goods within the EU (Article 14a, paragraph 2 of Directive VAT ).
This delivery, which is considered to be carried out between companies, is exempt from VAT , recognizing the right to deduction for the supplier (articles 136 bis and 169, letter b), of Directive VAT ). The supplier must issue an invoice to the electronic interface in accordance with the rules of the Member State where the delivery takes place.
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The delivery of the electronic interface to the consumer (considered a business-to-consumer delivery) may be:
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A distance sale of imported goods (Article 14 bis, paragraph 1 of Directive VAT ). The electronic interface will have to tax the supply of goods with the VAT applicable in the Member State of consumption and remit it to the tax administration of that Member State.
The invoicing rules of the Member State of identification will apply if the interface is covered by the single window (special regime for distance sales of imported goods), without the identification number having to appear on the invoice in EU If the special regime is not used, the invoicing rules of the Member State where the distance sale of the imported goods takes place will apply (article 219 bis of the Directive on VAT ).
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A supply of goods within the EU (Article 14a, paragraph 2 of Directive VAT ) This situation covers both domestic deliveries and sales intra-community distance transfers of goods carried out through the electronic interface as a taxable person. Whether the Union regime is used or not, the electronic interface will have to tax the delivered goods with the VAT applicable in the Member State of consumption and remit it to the tax administration.
The billing rules of the Member State of identification will apply if the interface is covered by the single window (special regime for intra-Community distance sales of goods and certain national deliveries). If the special regime is not used, the invoicing rules of the Member State where the delivery takes place will apply (Article 219a of the VAT Directive ).
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The electronic interface that facilitates the sale will not be considered a taxable person for the following transactions:
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Goods in shipments whose value is greater than 150 euros imported into the EU , regardless of where the supplier/seller is established;
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Goods supplied to customers in the EU , regardless of their value, in case the supplier/seller is established in the EU