What changes the VAT on shipments from China? The new rules come into force on 1 July 2021
SomeóIf you do not fully believe, everyone will have to comply with the – The Polish government has adopted a draft amendment to the VAT Act and approved the changes with the so-called. e-commerce package. From 1 July 2021, the rules of VAT settlement of small goods will changeóin non-EU countries. Not every e-tailer is happy about this.
The adopted amendment introduces the so-called. e-commerce package, whichówhich envisages that the m.in. the elimination of the VAT exemption for shipments imported from outside the European Union of a value not exceeding EUR 22 and the extension of the scope of transactions which are not subject to VATóre for the purpose ofóVAT can be accounted for using the simplified One Stop Shop procedure. This means that a lot will change in the daily work of these e-shopsóThe new rules will be implemented in Poland, whichóThe new system will make it easier for traders who import products such as. from China.
The introduced changes are announced as próregulating competition to make it fairer for cheap productsófrom China. An influx of parcels with untaxed goods from the countryóThe increase in prices of goods imported from third countries to the European Union will be limited, which is supposed to benefit Polish entrepreneurs. The fact is, however, that many of them import cheap products from China and sell them on the Polish market, so their introduced VAT particularóIt will hurt a lot.
After 1 July 2021, new VAT obligations will be imposed on store ownersóThe new VAT law will also make it easier for online shops, sales platforms and auction portals operating in the European Union. Until now, retailers selling by mail order from other countriesóThe new rules will apply from 1 July 2021, until the threshold set by each EU country is exceededóThe seller should choose the option to tax sales in the country of dispatch.
The new e-commerce package provides for a unified approach for all member states of the European UnionóThe new VAT rate for shipments from ChinaóThe application should be tested in order to ensure that it is possible to settle the VAT in the supplier’s country and at the applicable rate. It also introduces a one-stop shop for goodsóThe new regulations are to be introduced in the area of imported IOSS (Import One Stop Shop), thanks to whichóThe application should be tested on a large number of mobile devices so that companies no longer need to register for VAT in every EU country in which they operateóThe new rules will come into force on July 2021. They only need to do it once in IOSS.
One-stop shop for goodsóThe e-commerce package is to facilitate the collection, declaration and payment of VAT to vendors whoówho sell imported goods to customers in the EU. The registration in IOSS will be effective from April 1, 2021.
It is worthwhile to thoroughly research this topic and prepare your swóThe business will not have to register as a VAT payer in every country of the European Union. More and more productsóThe new VAT obligation will be imposed on all purchasesóThe new regulations will come into force on 1 July 2021óThe new VAT obligations will apply to all purchases from Europe, not only directly from China, so that not all purchases will necessarily be subject to VAT.
However, there are indications that the prices of goods are going to increaseóThe adopted amendment introduces the so-called “One Stop Shop” for imported goods purchased outside the EU and possibly also the cost ofóin logistics services, if, for example. courier companies will gain more responsibilities in connection with the imposition of VATófor filling in. But it is definitely positive information for those sellersóIn Poland, któThey are now competing with the offers of storesóin the online model of dropshipping from China or offers on marketplace platforms, where no invoices are issued for the purchase. Products should become more and more attractive “made in Poland”, not only because of its competitive pricing, but also because of its high quality, whichóThe methodology is often appreciated by foreign customers – e.g. Germans, Slovaks or Czechs – buyers already willingly in Polish online stores.