e-Commerce and foreign VAT-rules
What should I pay attention to as a trader?
Your newly launched webshop is running well, so well that even foreign customers have found their way in. They are not subject to the same VAT rules as domestic customers. How do you deal with this with the least administrative fuss? New VAT rules have been in force for a year now, making things a lot simpler. So how about this?
Your newly launched webshop is running well, so well that even foreign customers have found their way in. They are not subject to the same VAT rules as domestic customers. How do you deal with this with the least administrative fuss? New VAT rules have been in force for a year now, making things a lot simpler. So how about this?
There used to be a jumble of VAT rules per country in the EU. How much the VAT was and whether you had to pay it was not always clear, which is why general rules were introduced for all EU countries. With globalisation and the rise of e-commerce, there was a need for more streamlined regulations, allowing even smaller retailers to easily serve their international retail customers.
Therefore, since 1 July 2021, new VAT rules apply to sales to other member states.
Abolition of low valueTo start with, the VAT exemption for imports of low-value goods (maximum €22) was abolished. Import VAT is always paid, regardless of the value of the shipment.
Identical threshold amount for each EU country
The threshold amount is now the same for every member state. That threshold is €10,000 excluding VAT. What does this mean? If the sale exceeds this threshold, the VAT of the Member State where the private buyer is established will be charged.
The threshold amount is now the same for every member state. That threshold is €10,000 excluding VAT. What does this mean? If the sale exceeds this threshold, the VAT of the Member State where the private buyer is established will be charged.
If you sell for less than 10,000 euros to your foreign customer, you can charge Belgian VAT. That's the easiest thing for you. But you can also charge VAT from the Member State of destination.
Foreign VAT declaration no longer obligatory
Previously, if you exceeded the threshold amount, you had to apply for a separate VAT number from the country to which the goods had to go. This is no longer required. If the €10,000 threshold is exceeded, there is no longer any need to register for VAT in other Member States and, as a seller, you are therefore not obliged to submit VAT returns there either.
Previously, if you exceeded the threshold amount, you had to apply for a separate VAT number from the country to which the goods had to go. This is no longer required. If the €10,000 threshold is exceeded, there is no longer any need to register for VAT in other Member States and, as a seller, you are therefore not obliged to submit VAT returns there either.
One-Stop-Shop for all your VAT declarations
Of course, you do have to submit your foreign VAT registrations and returns somewhere. This can now be done easily every quarter with an OSS declaration (One-Stop-Shop) via the Intervat portal. In that OSS declaration, you enter the sales and the foreign VAT due on them per Member State. The foreign VAT goes to the Belgian VAT administration, which forwards the correct amount to the other member states.
Of course, you do have to submit your foreign VAT registrations and returns somewhere. This can now be done easily every quarter with an OSS declaration (One-Stop-Shop) via the Intervat portal. In that OSS declaration, you enter the sales and the foreign VAT due on them per Member State. The foreign VAT goes to the Belgian VAT administration, which forwards the correct amount to the other member states.
Note: If (part of) your stock is in another member state, you do have to apply for a VAT number and submit VAT returns in that member state.
IOSS for sales outside the EU
There is also such a thing as the IOSS declaration, which also offers some advantages. For example, if you meet certain conditions, you can use the IOSS declaration to avoid import VAT when importing goods that you then deliver to another member state or a country outside the EU. The IOSS declaration then also fulfils your foreign VAT obligations.
Note that for sales to individuals outside the EU, you can only benefit from the IOSS scheme for shipments with a maximum value of 150 euros. The scheme thus reduces the impact of the abolition of the VAT exemption for imports.
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