The European Commission recently put forward important proposals that will change the customs and value-added tax landscape. The proposals to reform the EU Customs Union will be implemented step-by-step starting in 2028. Other important EU VAT changes for platforms are proposed to enter into force in 2025.
The rapid growth of e-commerce has led to a boom in the number of small packages of low-value goods entering the EU, each of which, since 2021, needs an individual customs declaration. VAT is applicable on all imported goods, while parcels valued up to 150 euros ($165) are relieved from customs duties.
Currently platforms are only considered “deemed importers” if the goods valued under 150 euros are imported into the EU. Otherwise, EU consumers are considered the importers liable for payment of import VAT and customs duties due on the goods they have bought online.
E-commerce platforms need to prepare for the potential impact of new obligations imposed on them by the EU’s proposed changes to customs and value-added tax rules, explains Aiki Kuldkepp of Grant Thornton Netherlands.
Source: bloombergtax.com
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