Why such developments ?
E-commerce is constantly growing : online sales reached 112 billion in France in 2020, an increase of 8.5 % compared to 2019.
Tax and customs rules must therefore evolve to guarantee conditions for fair competition between all European and foreign players in online commerce, as well as between those in e-commerce and physical retail. Indeed, so far, retailers and e-retailers in the European Union (EU) have suffered unfair competition from certain unscrupulous online retailers established outside the EU, who have used outdated devices to avoid paying VAT.
The European Commission estimates that more than 5 Billions of euros of VAT could be collected on these transactions, which have so far evaded taxes in the EU. In particular, there are up to 450 of them in France millions of packages are sent every year, and all will have to be declared to customs and taxed.
What is changing for online retailers and online sales platforms
The changes apply to all online sales of goods, whether from outside the EU or within the EU.
For companies, this translates into simplificationthe current VAT regime on the sale of goods at a distance located in the EU at the time of sale to consumers. Unique threshold of 10 000 € is now applicable. Above this threshold, VAT is declared and paid in the Member State of consumption.
A significant part of e-commerce takes place through online platforms. From 1 July, VAT collection will be more reliable : these platforms become, in certain cases, VAT payers and are subject to new record keeping obligations.
In order to simplify procedures for businesses, especially platforms, and to avoid having to register in each Member State of expenditure for VAT, the scope of one-stop VAT counters set up in each EU Member State has been expanded. From 1 July, companies registered at the French counter are no longer required to register with the tax authorities of other Member States to declare and pay VAT.
In addition, from 1 July, distance selling of goods located outside the EU from under 22 € are no longer exempt from VAT, except in the overseas departments and regions (DROM). This makes it possible, in particular, to combat the splitting of plots in order to avoid VAT.
All these sales are now subject to VAT and this can be taken over by the seller or platform from the buyer at the time of online sales thanks to a single import window or Import in one place (IOSS) when not exceeding 150 €.
This VAT all in one place and the registration procedures for this system are presented on the website impots.gouv.fr.
Special teleprocedure available on the site impots.gouv.fr from the professional tax area of the operator is proposed to carry out these procedures.
If you have questions about how to register for a new device, you can send a message to : VAT.email@example.com
For shipments with a value of less than or equal to EUR 150 excluding IOSS, as well as for shipments with a value of more than EUR 150, the rules of liability are explained in the following BOI: