Webshops: New VAT rules to come,

By: Trademagazin editor Date: 2020. 11. 11. 11:24

The 2021 tax package submitted by the government to parliament includes new VAT regulations for e-commerce. The law is expected to be passed next week, with major changes mostly taking effect on July 1, 2021.

A significant part of the activities of webshops, the so-called the current rules for distance selling were designed for classic “catalog” sales even before the boom in cross-border sales. Therefore, updating this regulation was already timely. Under the current legal environment of the European Union, for example, the webshop of a country with a lower tax rate can easily gain a competitive advantage over a webshop selling from a Member State with a high VAT rate (for example, Hungary). All this will change from July 2021, the new VAT provisions created by the EU will also be included in the Hungarian regulations.