E-Commerce VAT package 2021: Draft act amending the VAT Act after the first reading in the Sejm

On May 19, 2021, the first reading of the draft act amending the VAT act and certain other acts, providing for changes in the VAT taxation of the e-commerce sector, took place in the Sejm. The e-commerce package under examination provides for the elimination of the VAT exemption on imports, the so-called small parcels with a value of up to EUR 22 and the introduction of a VAT exemption for the import of goods in parcels with a value not exceeding EUR 150, if VAT is declared and settled in IOSS.

In addition, the draft act significantly extends the scope of B2C transactions, which for VAT purposes can be settled using the simplified One Stop Shop procedure. The planned date of entry into force of the changes in the e-commerce package is July 1, 2021. At the session of the Sejm, Deputy Minister of Finance Jan Sarnowski indicated that he did not expect any delays in the entry into force of the regulations.

Source PwC

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