Vat Information

MALTA

Company Name: YOT Ltd.

Registration Number: C93877 

VAT Number: MT26786902 

POLAND

Company Name: ITE HUB Sp. Z o.o.

Registration Number: KRS 0000971693

VAT Number: PL5213968159

Recent EU changes to VAT as of July 1 2021

What has changed for B2C operators established in the EU?

Under the previous VAT rules, supplies of goods to end consumers by Maltese businesses (‘MS 1’) to another MS (‘MS 2’), whereby the customer is not registered for VAT in that other state (‘MS 2’), is treated as supplied in the country of dispatch (‘MS 1’), unless the distance sales threshold is breached. Once the distance sales threshold is exceeded, the supply is subject to VAT in line with the VAT rules where the end consumer is established (‘MS 2’). Thresholds vary from one country to another; in Malta the distance sales threshold was EUR 35,000.

From 1 July, these different thresholds were replaced by one common EU threshold of

10,000 above which the VAT must be paid in the Member State where the goods are delivered. However, if the EUR 10,000 threshold is not exceeded, the intra-community distance sales will be deemed to be taking place in the country of dispatch.

To simplify matters and to make it much easier for B2C operators established in the EU to sell into other EU Member States, online sellers may now register for an electronic portal called the ‘One Stop Shop' (OSS) where they can take care of all of their VAT obligations for their sales across the whole of the EU. The application of the OSS will eliminate the need for multiple VAT registrations in different EU jurisdictions and will ease the compliance burden as EU businesses may opt for the OSS system. Once registered, the online retailer can notify and pay VAT in the One Stop Shop for all of their EU sales via a quarterly declaration. The One Stop Shop will take care of transmitting the VAT to the respective Member State.