EU Distance Sales

From 1 July 2021, a simplified system will be available. From this time, businesses making relevant supplies will be able to register for VAT in a single EU country as a ‘One Stop Shop’ (OSS) registration. All sales to private consumers in the EU with a consignment value of €150 or less will be charged to VAT in the country of destination and can be declared through the ‘One Stop Shop’ (OSS) registration. If GB businesses choose not to take advantage of this scheme, import VAT will be collected from the customer by the customs declarant (e.g., postal operator or courier). The declarant will then pay this VAT over to the relevant tax authorities.

The delay in the introduction of the simplification measures means that businesses undertaking distance sales in the first 6 months of 2021 could face significant compliance obligations and additional cost.

Sales to private consumers in the EU with a consignment value exceeding €150 in value do not fall within this simplification and will continue to be subject to the normal export/import rules.

XI’ EORI number will be required in order to move goods from NI to GB or other non-EU countries.

The Northern Ireland Protocol is a temporary arrangement under which NI operates as part of the EU in certain circumstances.  The Protocol will affect any business established in NI, holding goods in NI or receiving goods in NI.

The processes involved with moving goods in or out of NI are explained here.

Import VAT will be due on goods moving between GB and NI. An ‘XI’ EORI number will be required in order to move goods from NI to GB or other non-EU countries.

Businesses moving goods between NI and the EU will need to declare a ‘XI’ prefix before their VAT number and will need to complete EC Sales Lists if selling to VAT registered businesses.

Detailed information about the operation of the Northern Ireland Protocol can be accessed here.

The Government has established a free Trader Support Service for businesses operating under the Protocol. This service can provide help and advice and complete declarations on behalf of businesses. A business can sign up to the service here.

If you would like to know more on any of the points above or have another VAT issue you would like to discuss, please contact our VAT department ([email protected]) or your usual FZCO & CO adviser.

Moving goods into, out of, or through Northern Ireland from 1 January 2021

When bringing goods into Northern Ireland from Great Britain, you will pay no duty if:
  • you are authorised under the UK Trader Scheme and declare that your goods are not ‘at risk’ of onward movement to the EU
  • you are eligible to claim a waiver on the duty up to specified limits

When bringing goods into Northern Ireland from outside the UK and the EU, you will pay the UK duty rate if your goods are not ‘at risk’ of onward movement to the EU.

Before you move goods
  1. If you plan to move goods between Northern Ireland and non-EU countries (including Great Britain), you’ll need an EORI number that starts with XI.
  2. If you plan to move goods between Northern Ireland and GB or bring goods into Northern Ireland from outside the UK, you can sign up for the free Trader Support Service.
  3. If you’re not using the Trader Support Service, you can get someone to deal with customs for you.
  4. If you import goods into Northern Ireland and want to declare your goods not ‘at risk’so that EU duty will not be payable on those goods.
  5. If you import goods regularly, you can apply for a duty deferment account to delay paying most customs charges.
  6. To understand any duty or other measures that apply to your goods.

FRANCE |No fiscal representative requirement post Brexit.

The French Tax Authority confirmed that UK businesses will not be required to appoint a Fiscal Representative when the UK finally leaves the EU and becomes a third country on January 1, 2021.
The French tax authorities have confirmed that UK businesses will not have a requirement to engage a fiscal representative when the Brexit transition period ends on 31 December 2020, even if there is no agreement reached between the UK and the EU.
A fiscal representative is a local entity that represents foreign traders for VAT purposes, usually in countries where the traders must VAT register but cannot do so themselves.

Time is close for Austria’s VAT registration requirements for Amazon Sellers.

Under the Austria Digital Tax Act 2020, Amazon has an obligation to share identity and transactional data on selling partners making sales to Austrian customers with the Austrian Tax Authority. This identity data includes the selling partners VAT registration number in Austria. Amazon may suspend selling privileges to customers in Austria if this is not provided.

If you are required to be VAT-registered in Austria, provide your Austrian VAT Registration Number on Seller Central by December 31, 2020, in order to avoid the suspension of their account until they become complaint with Austrian VAT law.

France Government to outline impacts and benefits of mandatory e-invoicing

Article 153 of the finance law for 2020 provides, the compulsory issuance of invoices between subject to dematerialized VAT and the transmission to the tax administration of the data on these invoices. A report was submitted to Parliament on the conditions for this implementation of these obligations.

The obligation would be put in place as follows:

From 2023, all companies will have to be able to receive an invoice electronic (obligation to receive), where applicable via the public platform made available free of charge by the State: this step is necessary to allow companies to earn quickly the gains expected from electronic invoicing. This will cover domestic B2B invoices initially. France imposed electronic invoicing on B2G transactions starting in 2017 in a phased approach.

Domestic B2C and cross-border sales invoicing transactional data will have to be reported (‘e-reporting’) to the French tax authorities. Gradually between 2023 and 2025 depending on the size of the company, an issue obligation invoices in electronic form, like the progressive obligation put in place for public sector suppliers:

  • January 1, 2023 for large companies,
  • January 1, 2024 for mid-sized companies,
  • January 1, 2025 for SMEs and VSEs.

Amazon Prime is now available in Turkey!

Tuesday September 15, 2020, customers residing in Turkey can subscribe to the free and fast shipping programme, which also includes access to free music, video and entertainment.
Prime members will enjoy same-day delivery with their orders of TRY 50 and above in Istanbul, Bursa and Kocaeli, free next day premium deliveries to Istanbul, Ankara, Izmir, Bursa, Kocaeli, Antalya, Manisa, Bolu and 10 other core cities, free two-day premium deliveries to Adana, Mersin, Gaziantep, Osmaniye, Kahramanmaraş, Adıyaman, Şanlıurfa, Diyarbakır and 15 other cities and free standard delivery for the rest of the country. Brands eligible for Prime delivery at launch include favourite brands such as Samsung, Under Armour, Maybelline, LEGO, Philips, Omo, Prima, L’oreal Paris, Puma, Bose, HP, Lenovo and many more.