New rules in e-commerce
The European Union (EU) has introduced reforms to the value added tax (VAT) rules that will affect sellers that sell via online marketplaces, from 1 July 2021 the operators of online platforms must familiarise themselves with a new concept: an online marketplace (referred to as an ‘electronic interface’ in the EU VAT law) that facilitates sales will be subject to the so-called deemed supply rules.
This means that such platforms fall under the scope of the same VAT payment obligations as they were the actual sellers. For this they need data that are mainly or fully retained by the enterprises that offer the given product for sale (e.g. the location of the product before dispatching, etc.).
Dr Gergely Bohus, tax consultant at Deloitte explained that it could happen that the businesses offering products for sale provide inaccurate data to the deemed suppliers, who despite their best intentions will then report and pay an incorrect VAT. Who shall be held responsible in such situations? Dr Bernadett Acsai, Deloitte’s retail and food consulting group manager answered this question: it is the online platform that must prove they did everything to the best of their ability to comply with the rules. Unfortunately this won’t be easy, as there is no established legal practice yet.//
Related news
The JátékNet.hu web store opened stores in four cities
The online store JátékNet.hu has opened stores in four cities…
Read more >GKID: e-retailers operating from abroad pose a great challenge to Hungarian online stores
Customers spent more wisely last year and, due to the…
Read more >From now on, not everyone can order cash on delivery in domestic webshops
It is often a challenge for online stores that some…
Read more >Related news
Seven trends shaping in-store marketing and retail design in 2024
Smart brands know that in-store marketing and store design can…
Read more >2024 is a year of challenges for the tobacco industry and retail
Annual tobacco retail sales are expected to have increased in…
Read more >The latest issue of Trade magazine is out now!
The digital version is available with more content once again,…
Read more >