Beginning on 1 July 2021, the European Union (EU) will implement a new EU-wide eCommerce threshold of €10,000 for distance sales of goods to consumers in other EU Member States and remove the VAT exemption for commercial goods under €22 imported into the EU.

Above the new singular threshold, online sellers will be liable for VAT in the Member State where their buyers are located; this way, the new rules ensure that “VAT is paid where consumption of goods takes place.” And with the VAT exemption abolished, all products imported into the EU will be subject to VAT.

The new rules are meant to “overcome the barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments,” according to the European Commission department for Taxation and the Customs Union.

 Example:

If VALLDER Ltd has sold goods worth less than 10,000 euros to Greece since the beginning of the year, then the domestic (Bulgarian) VAT will be calculated, which is valid for the country in which the company is headquartered, in this case it is Bulgaria, and a 20% VAT will be calculated. 

Otherwise, if we have already delivered goods in the total amount of over 10,000 euros to Greece since the beginning of the current year, then we are obliged to calculate the Greek VAT Tax of 24%.

 Please read on this link for more info: https://ec.europa.eu/taxation_customs/online-sellers_en