As of July 1st, 2021, new rules apply in the EU regarding the remittance of VAT by E-Commerce companies, such as art's excellence. These changes in VAT rules affect how we have to keep our records, show prices in our webshop, and how much our foreign customers will pay.
EU rules on VAT remittance
What will change?
The new rules apply to EU-based E-Commerce companies generating more than €10,000 in sales in all other EU countries combined. Therefore, as of July 1st, 2021, we must file VAT declarations in each EU country and charge our EU customers the VAT rate that applies to their country of residence. We will remit this VAT through a dedicated service desk of the Dutch Tax and Customs Administration. The customer does not have to take any further action.
Customers in the Netherlands
Our Dutch customers will not notice the change. Apart from regular price increases, Dutch private customers will continue to pay the price they paid before July 1st, 2021.
Customers in the EU
Private EU customers who do not have an account with us will see prices including Dutch VAT when they visit our webshop. When you place an order and fill in your shipping address during checkout, the shop will automatically adjust the price to the VAT rate in your country of residence. Since not every country charges the same VAT rate, the total amount may be slightly higher or slightly lower.
However, if you have an account with us and log in, you will see prices according to the VAT rate in your country. In your shopping basket, you can also see which VAT code applies. Nice and easy.
For corporate EU customers with a valid VAT ID, the ICP regulation remains in effect. Those customers can still make purchases without VAT and file their declarations. We will declare all ICP sales with the Dutch Tax and Customs Administration.
Customers outside the EU
Just like for our Dutch customers, nothing will change for our customers located outside the EU. After July 1st, 2021, they will continue to pay the price excluding VAT. According to the rate that applies in their country, they will be charged VAT upon receipt, plus any additional administration costs and import duties where applicable.