The government is working on the e-Commerce package, a major VAT reform. The changes will primarily affect taxpayers selling goods or providing services via the Internet. New obligations will also arise for online sales platforms, auction portals or even social networks where the sale takes place.
COMMENTARY by Magdalena Verdun, tax advisor in the VAT proceedings team.
– At first glance, it would seem an excellent legislative measure for the post-pandemic period – on the one hand, it provides Member States with an additional cash injection, and on the other hand, it allows companies to make savings on VAT settlements. Unfortunately, although the e-commerce VAT package is aimed at eliminating some of the existing legal gaps that result in losses in VAT revenues in e-commerce transactions, it still does not combat illegal VAT evasion in online commerce – says Magdalena Verdun.
The expert explains that after the entry into force of the e-commerce VAT package, there will be no need to register and submit VAT returns in countries of residence of goods recipients. Sellers will however still be required to charge VAT in the country of the goods recipient but this VAT will be declared in the form of a quarterly return to one tax administration within the framework of the One Stop Shop (OSS) system. In comparison to local registrations, a disadvantage of OSS is that it does not allow businesses to claim deduction of input VAT on expenses incurred in the Member State of the goods recipient.
The article was published on the Prawo.pl legal portal: https://www.prawo.pl/podatki/zmiany-w-rozliczaniu-vat-sprzedazy-przez-internet,504751.html