As of July 1st, new VAT rules enter into force in the European Union, which facilitate the fulfillment of the existing obligations related to the VAT and reduce the administrative burdens for the companies performing cross-border online sales.
For online shopping, an electronic portal (electronic one-stop shop / OSS) has been developed, in which the companies performing online sales can register for VAT purposes in one Member State electronically for all intra-community distance sales of goods and supplies of services provided to end customers. So far, these companies have been required to register in any country of the EU, before they can make sales to end customers in the relevant EU country. The one-stop shop (OSS) regime can be used to declare the due VAT on goods and services sold online throughout the EU to end customers.
The important amendment taken into force from July 1 gives the possibility to the Bulgarian companies operating on the European market, to declare and pay electronically VAT for all intra-union sales by submitting one quarterly VAT return to the Bulgarian authorities, even in the case of cross-border sales.
In the meantime, the one-stop-shop (IOSS) regime facilitates the collection, declaration and payment of VAT for sellers. This regime covers the distance sales of goods imported from third countries to end customers in the EU valued up to EUR 150. When using the "Import" regime, the supplier charges and collects the VAT applicable to the place of distance selling of goods and declares and pays this VAT to the Member State of identification through the electronic portal for the "Import" regime. In this case, the goods will benefit from an exemption from VAT on import, which allows a quick exemption at customs. The introduction of the "Import" regime abolishes the current VAT exemption for small consignments of goods up to EUR 22 and the VAT rules for the distance sale of imported goods are amended in accordance with the principle of taxation at destination. When the "Import" mode is not used, a second import facilitation mechanism will be available. VAT on imports will be collected by customers from the customs declarator.
Each EU Member State has an OSS portal where online merchants (including merchants who manage an electronic interface) can register. For Bulgaria, the registrations under the special regimes are integrated in the Portal for electronic services of the National Revenue Agency. Access to electronic services will be possible only with a qualified electronic signature.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
