Royal Decree-Law 7/2021 of April 27transposes into our national legal system Council Directive (EU) 2017/2455 of December 5, 2017 and Council Directive (EU) 2019/1995 of November 21, 2019, and introduces major changes in the field of taxation of supplies and services that are contracted by the internet or other electronic means, and sent or provided by businesses or professionals from another Member State or a third country.
New single threshold in the European Union
From 1 July 2021, the existing thresholds for distance sales of goods and services to buyers in other Member States of the European Union, the amount of which differed according to the Member State, will be abolished and replaced by a single threshold of 10,000 euros for the entire European Union, which will be a joint limit for supplies of goods and services.
For the purpose of determining the place of performance of the operation, the total amount of the supplies of goods and services carried out in the European Community during the preceding calendar year will be taken into account to see whether or not they exceed the threshold of 10,000 euros.
Below this threshold of 10,000 euros, transactions will be taxed at origin and subject to the VAT of the Member State of establishment of the provider, when the businessperson or professional is established only in one Member State, and has not waived taxation at origin and opted to be taxed at destination.
Above this threshold of €10,000, the seller will be taxed at the destination and will be obliged to charge VAT in the Member State where their buyers are located. To facilitate this, a One-Stop Shop (OSS), where the seller can register for VAT electronically in a single Member State and submit a single VAT return for all sales of goods and services in other Member States.
Changes to VAT on imports.
From July 1, 2021, the VAT exemption for the import of goods whose value does not exceed 22 euros is eliminated, meaning that all goods imported into the European Union will be subject to import VAT.
A special one-stop shop scheme is created for imports of goods into the European Union valued at less than 150 euros, which will be exempt if declared through the Import One-Stop Shop (IOSS).
When the special import scheme of the single window is applied, distance sales of goods imported from third countries or territories with a value of less than 150 euros will be exempt from import VAT and will be taxed in the Member State of arrival of the dispatch or transport through a single declaration in the Member State of identification.
Digital platforms ( Amazon, eBay, AliExpress, Facebook, Instagram, etc.) that sell goods imported from non-EU countries for a value not exceeding €150 or that sell goods within the EU from suppliers not established therein will be considered sellers for VAT purposes. The digital platform will be deemed to have received and delivered the goods itself.
If your company is affected by these changes, please contact us via email at ambit@ambitassessor.com or at our offices and we will inform you about how the one-stop shop mechanisms work, how to register and how to use them.
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A graduate in Business Administration from the University of Barcelona, she continued her education with a Postgraduate Diploma in Accounting and Management Control from Pompeu Fabra University, and completed various courses in tax and fiscal matters offered by the Terrassa Chamber of Commerce, the Barcelona Bar Association, and the Center for Financial Studies. Before joining Àmbit Assessor in 2001 as a tax and accounting consultant, she worked as an administrative assistant at Caixa Manresa and Banc Sabadell and as a tax information call center operator at the Spanish Tax Agency. For three years, she served as treasurer of the L'Alzinar Recreational and Cultural Society, a position she held concurrently with her work at Àmbit Assessor.
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