Online purchases in stores or platforms outside the European Union will all be subject to Value Added Tax (VAT) and must be cleared by customs as of 1st July. With this amendment, orders with a value lower than €22 will no longer be exempt. The new VAT rules apply to orders coming from countries like China, the UK, the USA and Brazil.

With this measure, the European Commission seeks to end the “abusive” use of the VAT exemption by companies outside the European Union and ensure equal competition conditions for all operators.

Currently, online sellers must have a VAT registration in each Member State in which they have a turnover above a certain threshold, which varies from country to country.  From 1st July, a single European threshold of €10,000 will be applied, above which economic operators must be registered.

To simplify the process for these operations, Brussels has created a European “One Stop Shop” where operators can take care of all their VAT obligations for their sales across the whole of the EU. The VAT paid will then be remitted to the country where the goods are delivered.

For further information contact:

Sofia Quental

Catarina do Canto Amaral