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Aware: 2020-07-08 16:36
Photo by Judita Grigelyts (V)
On Wednesday, the Government approved and submitted to Seimas the draft amendments to the Value Added Tax (VAT) and Customs Law prepared by the Ministry of Finance, according to which from 2021. The procedure for trade and payment VAT for a shipment worth up to 150 euros changes. The changes will affect both lower value shipments between the EU and shipments to the European Community.
Since 2021 January 1 In the European Union (EU), new distance selling rules are coming into force. adopted by the Council of Europe. The EU wants VAT to be paid to those countries where goods and services are purchased. This procedure has been applied to electronic services since 2015 and since 2021. It also applies to goods acquired remotely. The latest changes will affect intra-community trade and goods shipped to China and other third countries, the finance ministry said.
Goods transported to three countries may be more expensive for consumers, because from 2021 onwards. All these products will be subject to VAT from the first euro. Shipments of up to 22 euros are currently exempt from VAT.
The draft VAT amendment extends the application of the comprehensive EU system, which is already in force, in which VAT is collected in one Member State and distributed to other Member States. Such simplification schemes for business VAT, where service providers do not have to register in each Member State and declare and pay VAT there, currently only apply to electronic, telecommunications and broadcasting services. As a result of these changes, these schemes will also apply to goods supplied remotely to other countries, as well as to small shipments of goods (up to 150 euros) imported to three countries.
The proposed changes should take effect in 2021. However, the European Commission has proposed to postpone implementation for half a year, that is, until 2021. July 1 The Commission is ready to postpone the entry into force of the amendments, given that the COVID-19 outbreak has forced Member States to change their priorities and reallocate financial resources. The postponement has not yet been approved by the Council of the EU.
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