The VAT exemption threshold of €22.00 for online goods ordered from non-EU countries will cease to apply as of 1 July 2021, meaning that import VAT is payable from the first cent. The EU’s decision is intended to ensure fairer taxation.
The imposition of this tax brings another obligation with it: irrespective of the value of the goods, an electronic customs declaration showing the VAT will be required for all shipments of goods brought into the EU from third countries. This is designed to ensure complete tax and customs documentation and prevent tax fraud, particularly in relation to small consignments.
Spot checks to ensure fair competition
In order to prevent under-invoicing, the customs authorities will also carry out monthly spot checks on small shipments from third countries with the help of risk profiles.
The amendments passed by the European Union Economic and Financial Affairs Council (ECOFIN) are intended to ensure fairer taxation for traders based in the EU, who have always passed on the applicable VAT on every item sold, regardless of the price.