New VAT Payment Rules Form Threshold for Webshops
BRUSSELS, Belgium – For ‘bike-webshops’ it is getting harder to sell products outside their place of residence. New European Union VAT rules cast a threshold for them.
Since the start of 2015 the new VAT rules stipulate that cross border sales of webshops has to take into account the VAT rate of the country of destination. Members of the Dutch Parliament as well as the EU Parliament have indicated that this results in administrative chaos. They have thereby given the following example: if a German buys an e-book, the webshop must submit the nineteen percent VAT to Germany.
Chain Reaction, Wiggle, Internetstores. Alibaba
According to MEP’s smaller webshops are not able to handle all this paperwork. They therefore urge the responsible EU Commissioner Pierre Moscovici for action.
The question is whether this threshold also holds true for the giants under the bike-webshops like Chain Reaction, Wiggle or Internetstores AG. Evidently this is not the case for Irish Chain Reaction. This webshop automatically locates the country’s corresponding VAT rate and includes it in the payment procedure. However, whether Alibaba.com will take the new rules into account is very, very doubtful.