New EU VAT law since July 1st 2021

Herrenberg, July 2nd 2021

On 7/1/2021 a new EU law has come into force. This concerns the value added tax. It was passed due to the massive increase of players in e-commerce and with the aim to simplify procedures and prevent VAT fraud.

We as merchants are now obliged to charge VAT to companies without a valid VAT ID, as well as private customers, doctors, therapists etc.
The VAT of the respective country from which the order is placed will be charged.

At the same time, however, the net sales delivery threshold was lowered, which stipulates that mail order companies must calculate and pay the respective sales taxes of the individual EU countries from a certain sales value per year.

Calculation example:

Private customers or entrepreneurs without a valid VAT ID from Austria order a product for 100€ net. Until 6/30 we had to charge them 19€ VAT in addition to this, making the total 119€. Since 7/1 we have to charge 20€ ( = 20% ), so the total is 120€.

If you have a VAT ID, but it is not activated for the international purchase of goods, please consult your tax advisor. Otherwise you will be charged VAT.