E-commerce | MDDP

HOW CAN MDDP HELP YOU?

The e-commerce VAT package and your company
Audit of the company’s readiness for the new obligations involved in the e-commerce VAT package and comprehensive implementation of appropriate solutions aimed at the correct settlement of e-commerce transactions and cross-border services
- Analysis of transactions and settlements made by the company in terms of the new obligations involved in the e-commerce VAT package. Determination of the impact of the new regulations on the company’s operations.
- Introduction of solutions aimed at correct settlement under the OSS procedure.
- Support for VAT registration in individual countries (in case of non-application of OSS).
- Introduction of procedures aimed at verifying the exceedance of sales thresholds in individual countries and application of appropriate tax rates.
- Support in introducing changes related to the collection and analysis of data on transactions, suppliers, consumers (records) and changes in the scope of accounting and invoicing systems.
- Introduction of appropriate solutions for entities providing cross-border services.
Settlement of trading platforms (electronic interfaces)
Comprehensive support for entities operating trading platforms in implementing solutions aimed at the correct compliance with VAT settlement obligations
- Determination of whether the company is subject to the new obligations regarding electronic interfaces.
- Introduction of solutions aimed at proper documentation and settlement of transactions concluded via trading platforms (including invoicing and the use of cash registers).
- Designing of activities aimed at limiting the potential liability for non-collected VAT (due diligence).
- Preparation for the introduction of new tax records relating to transactions concluded via trading platforms.
- Settlements in OSS and support in registration in individual EU countries.
Solutions for importers and carriers (postal operators)
Introduction of relevant solutions aimed at correct settlement of transactions by importers, couriers and postal operators
- Verification of transactions concluded by the company in terms of new obligations involved in the settlement of import of goods.
- Analysis of the possibility of using the import IOSS (import one-stop-shop) and implementation of solutions aimed at correct settlement of transactions via the import IOSS.
- Support in registration in individual EU countries.
- Analysis of the possibility of using the simplified procedure and implementation of solutions aimed at correct settlement of imports on goods presented to customs authoriti
Risk Mitigation Procedures
Introduction of internal procedures mitigating the risks related to incorrect VAT settlements in e-commerce and cross-border services
Training/Workshops
- Trainings/workshops on new the regulations on e-commerce taxation intended for:
  - persons in charge of implementing solutions regarding new VAT regulations in e-commerce taxation,
  - employees of financial, tax and legal departments as well as other departments (e.g. purchasing department) in charge of carrying out related transactions and settlements
- Consultations during which MDDP experts answer reported tricky issues and explain practical doubts related to the e-commerce VAT package.

E-commerce

As of 1 July 2021, a package of ground-breaking changes to the rules on VAT taxation of electronic commerce (e-commerce) is coming into force.

The changes to be implemented are related to activities aimed at tightening the European VAT system. In recent years, the European Union has adopted a number of changes to EU regulations, including ones aimed at combating VAT fraud in the area of e-commerce, equalizing the situation of EU entrepreneurs with third-country entities, a more complete reflection of the principle of taxation of goods/services at the place of their consumption and reducing the administrative burden related to tax obligations for entities operating in the e-commerce industry. These changes are to take effect from the beginning of the second half of the year.

The planned modifications will have very far-reaching effects and will require appropriate preparation from almost all entities operating in the e-commerce industry. Moreover, these key changes will affect not only e-commerce entrepreneurs, but may also affect the activities of all entities providing cross-border services.

For whom?

The new obligations will apply to many companies operating both online and offline: