As part of the so-called “Digital Package,” a new value-added tax system is being introduced at the EU level. It entails far-reaching changes for cross-border online trade with consumers. Effective July 1, 2021, the previously applicable VAT thresholds for B2C distance sales within the EU will be eliminated. Taxes will be due directly in the country of delivery for net sales exceeding 10,000 euros in any EU member state.
Further information is also available from our partner, IT-Recht-Kanzlei.
IT Recht Kanzlei: EU VAT Reform in Online Retail
IT Recht Kanzlei: Are Gross Price Differences Based on the Tax Rate of the Country of Delivery Permissible Despite the Geoblocking Ban?
As the operator of an XONIC online store that exceeds the 10,000-euro net sales threshold , these measures can be implemented quickly. You currently have two options:
- We’ll use a script to add all EU tax rates and country zones to your store.
- You can enter the tax rates for your delivery countries yourself as follows:
First, add your delivery countries as country zones under: Settings -> Country/Tax -> Country Zones
Then assign the tax rates to the country zones under: Settings -> Country/Tax -> Tax Rates
In addition, for shops with an active support and update license, we offer the option toautomatically apply this change via an update on July 1, 2021 (available for all XONIC shops starting with V2).
Please request the automatic tax rate update by opening a ticket, sending an email, or contacting us by phone.
To receive the automatic VAT update, you need a current Support and Update License. You can view the status of your license directly in the XONIC backend under Dashboard ⟶ News / Information. If your license has expired, you can renew it right here.
Renew Support & Update License
This article is updated regularly.
