(09.06.2021) On July 1, 2021, the tax treatment of online trading in the European Union will change. Swiss e-commerce retailers have to adapt to these changes in VAT, which affects the distance selling of goods and services to European customers.
Companies that sell products to the EU from Switzerland or a third country via their own platform must take the VAT regulations of the destination country into account in their prices. This applies if the value of the goods or services sold is EUR 150 or less. The reform, which aims to create fairer competition between e-commerce retailers, ends the VAT exemption for shipments worth less than EUR 22 that are imported within the EU.
This customization is made easier by setting up a single point of contact called the Import One Stop Shop (IOSS). In this way, the sellers can invoice the VAT on sale and pay it directly to the authorities. In addition, companies that sell goods via their own online shop that are sent from an EU country must register on a platform set up for this purpose. Companies that do not have a branch in the EU are advised to get an IOSS number quickly from a fiscal representative.
For more information on this change in VAT rules in the EU, see the links below.
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