New VAT rules will apply from 1 July 2021 onwards

Hi Hikashop,

This ticket below refers to the new VAT regulation in Europe.
www.hikashop.com/forum/taxes/901799-eu-t...-or-less.html#328960

But this ticket only concerns the import of goods that are delivered from outside the EU to customers who do not submit a VAT return within the EU. A threshold of 150 euros has indeed been set for this before it is seen as an export and therefore import duties have to be charged.

However, for e-shops that deliver goods that are already in the EU and are delivered to consumers (or to customers who do not submit a VAT return) in other EU countries, they also have to deal with new rules.

For example, up to € 10,000 worth of goods that are delivered abroad, they must apply the VAT rate of their own country.
However, when they have more than € 10,000 in turnover abroad, the VAT will change from that moment and all orders must receive the VAT rates of the relevant countries to which they will be delivered.

So Hikashop or a plugin must ensure that there is a turning point of passing on VAT rates as soon as the € 10,000 turnover limit of foreign delivery has been reached.
There is also a possibility to immediately calculate the foreign VAT rates from 1 January, so you would not need the above plugin. But a smaller number of companies will probably opt for this.
So something important must be achieved in the short time.

Furthermore, in both cases it must be possible to read how much VAT has been charged to consumers (or to customers who do not submit a VAT return) in each country. So that these can be specified in the new OSS scheme.

See this short video from European Commission department for Taxation and the Customs Union: youtu.be/scaI508byzA
See also: ec.europa.eu/taxation_customs/business/vat/vat-e-commerce_en
See also: ec.europa.eu/taxation_customs/business/v...-border-ecommerce_en
See also: www.avalara.com/vatlive/en/vat-news/eu-2...rce-vat-package.html

Hopefully you are already working on this or we can achieve something workable together.

Ideas are welcome.

Kind regards,
Lumiga

Hi,

You are right it is possible to charge different VAT for different countries. And you can also see "how much VAT has been charged to consumers (or to customers who do not submit a VAT return) in each country" for a specific periode.

But what is not there yet and what I think should come is an option to check whether more than € 10,000 in order amounts to foreign customers has already been converted so that from that moment the VAT of the various countries will be charged. So before the € 10,000 is reached, Dutch VAT must be charged for shipments to Belgium, France or Germany for a Dutch shop. Only after € 10,000 foreign turnover the shop have to charged different VAT for different countries.

In 2021, there is an exception to this threshold of € 10,000 that applies for the second half of 2021