A statement made on October 1 by the former Federal Minister of Finance caused a great deal of uncertainty in the online merchant community.
We therefore want to correct this statement and put it into the correct context.
What is the background?
VAT e-commerce package and one-stop shop
As of 1 July 2021, cross-border deliveries to final consumers - these will then officially be called distance sales - will be subject to a new VAT system in the European Union.
We have recently explained the current status of this reform in detail.
In summary, the following can be said.
The national delivery thresholds will be abolished on 1 July 2021.
As a result, with the exception of a limit of 10,000 euros net, all cross-border supplies to final consumers in the EU will always be taxable in the country of destination.
According to the current logic, almost all online traders would then have to register for tax purposes in every EU country in which they send even one parcel.
In order to avoid this registration requirement, the One-Stop-Shop (OSS) is being introduced in parallel, through which these deliveries - and only these deliveries - can be registered centrally in the home country.
Statement of the former Federal Minister of Finance and correction
Peer Steinbrück explained yesterday,
... that in his opinion the OSS will not be completed on time and that it may take a long time before this happens.
At the same time, however, national delivery thresholds will be abolished, so that most traders would then have to register for tax purposes in (almost) all EU countries.
The extent to which the OSS will be completed in time for July 1, 2021 is indeed not yet one hundred percent certain, as we already report regularly in this blog.
However, should the OSS be postponed to 2022 or later, the abolition of national delivery thresholds will also be definitely postponed.
Both institutions - OSS & abolition of delivery thresholds - are legally related, so that one will not occur without the other.
We will continue to keep you informed in this blog and other formats in a factual, well-founded and understandable way.
You can already find a well-founded counterstatement in the following video of our colleague Dr. Moritz Lukas.
Reply directly after the performance of Peer Steinbrück
Taxdoo is the platform for automated and secure Value Added Taxprocesses
... and forms for the leading online retailers in Europe besides the handling of the current EU-wide Value Added Taxcompliance, Intrastat and financial accounting also offers numerous other compliance services via a unique platform.
Of course, from 7/2021 on we will be able to report your remote sales automatically and easily as never before via OSS.
If you want to know more about how you Value Added Taxcan efficiently and securely map compliance, financial accounting and much more via a platform, then book your individual and free initial consultation with the compliance experts from Taxdoo!
You are also welcome to register for our regular demo webinar in which we will introduce Taxdoo and our compliance services and answer your questions personally.