Portugal Tax Agency Explains New VAT Rules for E-Commerce Transactions, Online Purchases From Outside EU

The Portuguese Tax and Customs Authority Feb. 1 explained new VAT rules for e-commerce transactions and online purchases from outside the EU, effective July 1, 2021, due in part to the coronavirus pandemic. The clarification includes: 1) the abolition of the VAT exemption for online low-value consignments from non-EU countries worth up to 22 euros (US$24); 2) the application of import one-stop-shop (IOSS) and one-stop-shop (OSS) regimes for specified services; 3) the introduction of the IOSS regime for distance sales of imported goods on shipments valued at up to 150 euros (US$168); and 4) the simplification of the administration process ...