E-commerce has grown exponentially over the last couple of years, leading to a substantial increase in the sale, import and export of low-value consignments. The existing VAT provisions created price disadvantages for EU-based sellers and encouraged fraud by under-declaring the value of imports. Furthermore, the existing customs provisions relating to the declaration requirements for low-value consignments are scattered and unclear.
This has prompted the European Commission to review the EU provisions regarding import VAT and to review certain customs declaration requirements.
The new VAT rules are intended to combat fraud and to create a level playing field between EU-based and non-EU-based sellers. The amendments and additions in the customs declaration provisions aim at facilitating the levy of import VAT on low-value consignments, clarifying existing simplifications, reducing additional administrative costs for operators as much as possible and creating a level playing field between postal operators and express fast parcel operators.
Source WTS
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