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Changes in VAT for purchases from abroad via internet (e-shop).


The spread of internet use in larger solar groups, the intensifying competition, the economic crisis that limited consumption and today the pandemic of COVID 19 launched online shopping from the domestic market as well as imports from abroad. Greek companies have also taken advantage of the shift in consumers to remote markets, exporting Greek products worldwide.

From July 1, 2021 discover the VAT status and they will be asked questions that require time, that require me to ask to ask and make the users I had to do, beautiful and yes we apply our application in the VAT report and image . Application of EU employees looking for distance selling of goods from the EU that exceeds one year limit (35,000 or 100,000 euros, with the question) to buyers who asked questions about the use of the EU, what they register and pay. VAT at the buyer 's opening. From 1/7/2021, when the new rules come into force, VAT for sales below the threshold of 10,000 euros can be paid in the Member State in which the selling company is located. For sales that exceed this limit, companies will need to register at the OSS, where they can easily declare and pay the VAT due in other Member States for all distance selling.

What is valid today and what is changing from July 1, 2021

Buying online today an individual (final consumer) a product from an EU country is charged with VAT applicable in the country that sells it, e.g. we buy from Austria and it burdens us with the VAT in force in this country, which currently amounts to 20%.

With the change of the regime, this market will be burdened with the VAT of Greece, today 24%. If a company places an order in Sweden, it will be charged 25% VAT, which is applied by that country. Also from 1 July 2021, the VAT exemption for the import of goods in the EU whose value does not exceed 22 euros is abolished.

The new rules were introduced in order to: . ensure that VAT is paid where the consumption of goods and services takes place, thus offering a level playing field for business competition between EU Member States and third countries, as well as between the e-commerce industry and traditional stores

create a fair operating environment between EU companies and sellers outside the EU, In addition, the new rules aim to prevent and suppress tax fraud.

As in every rule there are exceptions, so in this regulation there are the following exceptions (note that the list is indicative)

• Services provided by intermediaries • Services related to real estate • Passenger transport services, and finally, • Catering or catering services

We note that in some countries it is allowed to apply special rates to certain sales.

Excessive rate Some countries apply a reduced rate of less than 5% to certain sales, which is called a discounted rate. In Spain, for example, an extremely reduced rate of 4% applies to certain services such as the maintenance and adaptation of means of transport for people with disabilities.

Zero rate Some countries also charge zero rates on certain sales. When zero rate is applied, VAT should not be paid by the consumer, but you still have the right to deduct the VAT you have paid for purchases that are directly related to the sale, e.g. for exports and certain financial services to non-EU consumers.

Standby rate (or intermediate rate) The waiting rate applies to certain products and services that are not eligible for the reduced rate, but for which some EU countries were already applying reduced rates on 1 January 1991. These countries have the option to continue to apply these reduced rates. instead of the normal rate, provided that they were not lower than 12%.These special rates were intended to be transitional arrangements for a smoother transition from the derogations to the rules introduced when the internal market entered into force on 1 January 1993 and were to be phased out.

VAT exemptions for small businesses

In most EU countries you can apply for a special regime that allows you to trade under certain conditions without being charged VAT. If the company makes taxable deliveries of products or services that are less than a certain annual limit, it may be exempt from VAT. In this case VAT will not be paid to the tax authorities, VAT will not be deducted on inputs or VAT will be indicated on the invoices. The company can, if it wishes, choose the normal VAT regime, in which case it will have to pay VAT and, therefore, you will have the right to deduct input VAT.

You should be aware that these limits vary from country to country and special conditions may apply. In some countries there is no VAT exemption for small businesses and you have to register as soon as you make taxable sales.

The scheme does not apply in the following cases: • sales from companies based in other EU countries • occasional economic activity • VAT exempt sales of new means of transport to customers established in another EU country • any other transactions as defined by each EU country

We believe that in the coming days the administration will give detailed instructions for the implementation of the new European rules.


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