Connect with us

Economy

Purchases below 22 euros outside the EU lose “tax-free”. What are the changes in e-commerce VAT rules – Observer

Published

on

Purchases below 22 euros outside the EU lose "tax-free".  What are the changes in e-commerce VAT rules - Observer

At a time when trade at distance and through electronic platforms has never been so large (and during the pandemic it was even more active), the rules that establish VAT payments in the European Union will change, as of July, affecting customers and exporting companies. But not only. Marketplaces, postal operators and tax administrations need to feel the difference too.

It is about the end of the tax exemption for the purchase of goods with a value of less than 22 euros outside the European Union. AS WELL AS less bureaucracy for companieswho can register in one EU country for VAT purposes, processing all in one digital counter

The challenges these measures are intended to address are not new. Afonso Arnaldo, chief executive of Deloitte, signals to the Observer that companies in the EU had “contextual costs, unfair competition from companies outside the EU about the companies working here, as well as about fraud. “

COVID-19. Online purchases are expected to reach almost € 10 billion this year.

Brussels started outline a solution six years ago… And tax experts say the leap made by e-commerce at this stage, marked by worldwide restrictions, compulsory work from home and other restrictions, has made the change even more urgent.

PUB • CONTINUE READING BELOW

As a result, the pandemic delayed the entry into force of these measures, originally scheduled for January 1, but the new model is even being promoted in July, promising to be a small revolution in the way VAT is paid on international trade transactions.

See also  Owner of Facebook in the 60 millionth deal to buy the rights to the name Meta - Technologies

There was no way back. The new rules were “ inevitable in the face of exponential growth of e-commerce“- said Amilkar Nunes, inspector of EY, in statements to the Observer. Internet commerce “was subject to a high level of complexity and burden for both Member States and companies, which created obstacles to its own development.”

EU countries to share information on online sales revenue

The European Commission has conducted a study on VAT-related barriers that affect e-commerce, recalls Amilkar Nunes, which showed that “the supply of goods to other EU countries other than those in which the supplier is permanently resident or established. will entail higher costs. “

On the other hand, the tax expert recalls, “It was also found that EU companies are at a competitive disadvantage as third country suppliers can deliver goods without VAT to EU consumers as part of the import exemption for small businesses. up to 22 euros “.

And that is not all. “The complexity of the system entails the contextual costs that companies need to meet their obligations and, as such, makes it difficult for Member States to comply with requirements, resulting in estimated losses of around € 3 billion per year,” he says. Also Amilkar Nunes, based on the work of the European Commission.

Thus, the tax expert understands that the new rules put EU companies “on a par with companies from third countries», Which until now were not required to collect VAT; they will simplify “VAT obligations for companies involved in intra-Community e-commerce” and contribute to “the further development of the EU single market”. And the icing on the cake: “All this will enable Member States to generate more revenue. “

See also  Etihad Airways A380 close to return to the skies

The Observer has tried to get an estimate of the additional tax revenues from the Ministry of Finance under the new rules, but has not yet received a response.

A purchase of cheap earrings on a Chinese platform, a mobile phone case in a UK store or a book in the US for less than € 22 counts until June 30, with VAT exemption in Europe, which is an advantage for consumers who, however, making these purchases creates a “distortion competition between companies, ”emphasizes Amilcar Nunes. Those who ship earrings, books, or any other item to buyers in the community area have a competitive advantage below this value compared to those who ship these items from an EU country. Or even in the face of a company on the street, bearing in mind that today, in many cases, it is easier to shop online than to shop.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Portugal Could Become a Reshoring Hub in Europe According to New Report – Executive Digest

Published

on

Portugal Could Become a Reshoring Hub in Europe According to New Report - Executive Digest

European companies are looking in the EMEA region (which covers Europe, the Middle East and Africa) for an alternative to manufacturing and sourcing in Ukraine and Asia after months of supply chain disruptions, according to a new Supply Chain Disruptions report sponsored by JLL.

According to this report, there are several companies operating in the retail and manufacturing sectors that have already decided to partially or completely redistribute their production, and the data shows that the new European beneficiaries of the “reorientation” are Central Europe and Romania, and the European borders with Turkey and Morocco are also on the radar.

This trend follows a pandemic that has caused disruption in distribution networks and serious problems in ports and airports, so companies have begun to choose “reshoring” as an attempt to solve the problem of disruption in supply chains.

JLL also expects that the shortage of land and labor will boost demand in Central Europe, from the primary market to the secondary and tertiary markets, the latter strategically located.

Data from Flexport (a global logistics platform) shows that the average container flight from Asia to Europe has almost doubled since 2019, and Buck Consultants International (BCI) research confirms the same as JLL: more than 60% of US and European companies plan to send part of their products back to their country of origin.

Given the existing transport networks and logistics gateways, it can be said that goods will circulate primarily along two distribution corridors: the traditional European dorsal (from central England to northern Italy) and the emerging “Black Sea banana” connecting Budapest. to the Black Sea.

See also  Gulp wants to increase dividends, cash flow and bet on the green side of power - Energy

Marlene Tavares, Head of Retail Investment and Logistics at JLL, explains: “The discussion about nearshoring (where operations move to a country close to the country of origin, as opposed to offshoring) is not new. Rising wages in places with low-cost production and increased risk from climate change, strikes and accidents such as the blockade of the Suez Canal have sparked controversy over the issue over the past decade.

However, a more favorable cost-risk ratio and the loss of many manufacturing infrastructures in Europe continued to give the Asian continent an advantage in hosting large distribution centers and manufacturing a wide range of products. This scenario is now changing due to the recent situation as well as new consumption habits. In this context, Portugal has a competitive advantage due to its very attractive geographic location and demographics, which place us prominently in the European Neighborhood Strategy,” he emphasizes.

Continue Reading

Economy

Emirates increases total number of huge Airbus A380 flights to London to no less than 9

Published

on

Emirates increases total number of huge Airbus A380 flights to London to no less than 9


Airbus A380 – Image: Emirates


Emirates announces this Monday, December 5th that it has stepped up its operations at Gatwick Airport, one of the terminals serving London, England, by adding a third daily flight on a large Airbus A380 double-decker aircraft.

The additional operation will offer more than 1,000 seats on the Dubai-Gatwick line every day of the week. Emirates flight EK11 departs Dubai at 02:50, flight EK15 at 07:40 and flight EK09 at 14:25.

In addition to the company’s services at Heathrow Airport, which has six A380s a day, the connection between Dubai and London now has an incredible 9 flights a day on the world’s largest passenger transport aircraft.

Emirates currently serves the UK with 119 weekly flights from seven hubs, including: London Heathrow Airport (A380) six times a day; three times a day to London Gatwick (A380); daily service to London Stansted (B777); three times a day to Manchester (A380); dual daily service to Birmingham (B777); daily flights to Newcastle (B777); and a daily service to Glasgow (B777).

According to Emirates






With a degree in mechanical engineering and postgraduate studies in aircraft maintenance, he has more than 6 years of experience in the field of technical control of aircraft maintenance.


See also  Etihad Airways A380 close to return to the skies
Continue Reading

Economy

Socrates, Granadeiro and Bava demand compensation for bad faith litigation from Espírito Santo International

Published

on

José Socrates, Enrique Granadeiro and Zeynal Bava are demanding compensation for what is left of the assets of Espírito Santo International (ESI). The Central Civil Court of Lisbon, in which three defendants and five defendants, including Ricardo Salgado, are suspected of causing more than 72 million euros in damage to the GES universe.

Challenging this charge, in addition to a plea of ​​not guilty, the three are asking the court to sentence the insolvent property complex “to pay compensation for the recovery of all costs and restitution for all losses caused by this form of litigation,” the defense stressed. former Prime Minister of the Socialists.

The bankruptcy filing states that since at least 2007, the defendants have been paid “large sums” that turned out to be “illegal and unreasonable counterparties” in defense of the interests of GES, “namely, in the strategy laid out by Ricardo Salgado in defense of the interests of the group in PT ”, but also in the mission to “put an end to the participation of the PT group in the share capital of the operator VIVO” – Luxembourg masters Alain Rukavina and Paul Laplum, managers of insolvent property and authors The process said that this money was transferred “to the detriment of the assets” of ESI and the Group’s offshore companies HPS.

As for the administrators of insolvent property, Granadeiro and Bava were to be paid “for their work contrary to their professional duties and interests of the PT in their positions of authority”, and Socrates, as prime minister, would receive money from the government. Espírito Santo Group “to act in accordance with the strategies identified by Ricardo Salgado for PT to the detriment of the public interest.”

See also  list of things not to use

loading…

Continue Reading

Trending