2022. December 16. 15:42

First Year Experience of the Abolition of the €22 Rule and the Introduction of the New e-Commerce Vat Laws

Kristóf Péter Bakai
Brigadier in Finance, Deputy Commissioner,
National Tax and Customs Administration, PhD. Candidate, University
of Public Service, Doctoral School for Military Sciences

László Suba
Lieutenant Colonel in Finance, Instructor,
University of Public Service, Faculty of Law Enforcement, Department
of Customs and Finance, PhD. Candidate, University
of Public Service, Doctoral School for Military Sciences

Andrea Szabó
Head of Department, Colonel in Finance, Associate Professor,
University of Public Service, Faculty of Law Enforcement, Department
of Customs and Finance

Published in: Public Finance Quarterly 2022/4. (p. 585-600.)


Summary: The abolition of VAT exemption regarding negligible consignments has raised a variety of tax and customs management issues in terms of budget revenues both on the EU and domestic fronts. The abolition of VAT exemption below €22 in July 2021 has brought upon a completely new situation in the customs management of e-commerce from non-member countries to the EU. A review of the achievements and challenges of the past year, which also underpins the timeliness of our study, can contribute to further refinement and clarification of the system. The main focus of this research is to explore the customs experience with the new VAT regime for B2C e-commerce from third countries into the customs territory of the European Union, introduced from 1 July 2021, to identify the problems encountered in the past period and possible solutions. The article will use statistical data collected from the National Tax and Customs Administration to explore the characteristics of the past year and the main trends in turnover, and to identify the challenges and the solutions authorities can provide to them.

Keywords: customs union, e-commerce, customs value, intrinsic value, VAT exemption, VAT control

JEL codes: H20, H26, H27, F13, K34, O24

DOI: https://doi.org/10.35551/PFQ_2022_4_7 


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