Date: 06-Jul-2021

The EU changes the rules for VAT in E-commerce for foreign businesses also

From July 1, the European Union has started implementing new legislation related to the payment of VAT for businesses that sell products or services to consumers in the EU through E-commerce.

All businesses in Kosovo that make online sales in the European Union market must be informed about the changes in the tax legislation for E-commerce sales so that they can implement the legal obligations in time and without legal consequences.

Some of the changes:

1 Business that through E-commerce sells products or services in EU countries will not need to be registered for VAT in each country where they sell products, but can only be registered in one EU member state.

2 Businesses can register through the One Stop Shop electronic platform to manage their VAT obligations from a single place.

3 The threshold for VAT registration will now be €10,000.00 for all EU countries. Until now, the VAT threshold has been different in each EU country and has varied from €35,000.00 to €100,000.00 depending on the country.

4 VAT will be applied to all products entering from outside the EU, including those products with a value of fewer than 22 Euros.

5 By registering businesses on the IOSS platform (Import One Stop Shop) it will be possible for the customer to pay VAT at the time of purchase so that the customer will know the final price at the time of purchase and there will be no additional payment for VAT upon receipt of the product.

* These changes will also apply to businesses and marketplaces that are not located in the EU but that sell products to consumers in the European Union.