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

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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.

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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.

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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. “

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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.

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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Economy

See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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