Changes to online retail from 2021

Lockdowns, curfew bans, closed businesses - the recent crisis has shown that new Sales structures are necessary in order to survive as a company in turbulent times. Two key words of this time to survive as an entrepreneur are Webshop and Online retail. Companies that sold their goods through webshops or online platforms were able to generate at least some part of their revenue during the lockdown phase.

At the Operating a webshop There are some special considerations to be made so that the blessing in a time of crisis does not turn into a curse in the next one. Review by the Finance Department Will be. Will be Goods from an entrepreneur a private customer or to a Customers without their own UID number in a Another EU country sells, Therefore, these sales are subject to Currently The Austrian sales tax, as long as the Delivery threshold of the respective EU country not exceeded will be. Alternatively, the application of the Delivery threshold forgoes will be. Exceeding The Delivery threshold or the Refusal the application of the delivery threshold leads to the fact that the Sales not apply Austrian value-added tax, but the VAT of the respective country must be invoiced. The value-added tax is then to be paid to the respective financial administration of the other country. Webshop operators should therefore in any case ensure that Sales by EU country separately record.

This regulation can lead to a situation where one Austrian entrepreneur in register for tax purposes in numerous EU countries must, and in accordance with the respective legal regulations there Value Added Tax Report and carry it off must. This Administrative burden Hopefully, in the future - according to the EU's plan - to cease to exist, to be omitted, to lapse, to become obsolete. As currently viewed, the above-described sales of shipping services are expected to No delivery threshold from 1.1.2021 more to be used. This means that entrepreneurs can use the Value Added Tax The respective destination countries charge the bill and to the financial administrations carry out they must. However, for this new feature to actually be Simplification if carried out, a so-called EU One-Stop-Shop Following the model of the already existing one Mini-One-Stop-Shop (MOSS) introduced. In the future, this will therefore intra-community turnover in the postal sector by Austrian companies through the Austrian one-stop shop reported and the tax debt central reported and paid through this portal. This will enable entrepreneurs to VAT registration and the associated significant expense for shipping sales in other EU member states is saved.

Companies that Mail order sales in other EU countries, should therefore use the next weeks and months to familiarize themselves with this Breaking down the innovation and to consider whether and how to Software for the Webshop adjusted It is necessary. In any case, the following issues must be taken into account:

• VAT rateWhich tax rate applies to the sold goods in the respective country?
• Price considerationsShould the respective sales tax be applied to fixed net prices? This would change the gross prices depending on which country the goods are shipped to. However, if the gross price is to be the same for all customers from the EU, the respective net price per country must be calculated accordingly.
• AccountingCan the required information (correct tax rate depending on the country, corresponding net and gross prices, etc.) be correctly stated on the invoice?
• If they are Tax amounts per country so recorded, that the reporting in the One-Stop-Shop can be done simply and correctly (e.g., by assigning the appropriate tax codes)?

Adhering to all of these points requires comprehensive changes or. Changes in the Programming from Webshops and should therefore be started as soon as possible. That Original date, The EU recently announced that the new regulations will come into effect starting from that date. Moved from January 1, 2021 to July 1, 2021, Because the financial administrations of the individual Member States also need to develop corresponding platforms. According to current Austrian legal framework the new regulation is already in place from 1 January 2021 it is to be applied, however, it remains to be seen on what date this regulation will come into effect Moved up It will happen. However, as of now – what has been postponed will not be undone. We will keep you informed about the further development.

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