Intrinsic value (e-commerce)
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- Topic: value of goods
The new EU VAT rules for e-commerce have introduced special schemes for the calculation of the import VAT for goods in consignments not exceeding 150€. The applied concept followed the threshold of the customs duty exemption for consignments of negligible value under the Duty Relief Regulation (Regulation (EC) No 1186/2009). Besides, as of July 2021, the Member States will need to integrate a validation mechanism in the declaration processing system (National Import Systems) to check whether the customs declaration for release for free circulation of certain low-value consignments (the H7 dataset) is legitimately applied.
Considering all the above, the customs legislation introduced a legally binding definition for this term that safeguards the harmonised implementation throughout the EU and builds on the approach that has been used for the customs duty exemption threshold. This definition applies for the implementation of the 150€ threshold both for customs and VAT purposes, regardless of the VAT scheme used.
Article 1 (48) of the Regulation (EU) 2015/2446 provides that “intrinsic value means:
- for commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice, and any other taxes and charges as ascertainable by the customs authorities from any relevant document(s);
- for goods of a non-commercial nature: the price which would have been paid for the goods themselves if they were sold for export to the customs territory of the Union;”
Any other related cost, besides transport and insurance, that do not reflect the value of the goods in themselves must also be excluded from the intrinsic value, whenever they are separately and clearly indicated in the invoice (e.g. tooling costs, license fees, export tax, etc.).
The phrase “other taxes and charges” refers to any tax or charge levied on the basis of the value of the goods or on top of a tax or charge applied to such goods.
As for the goods of a non-commercial nature, the definition should also be understood in the same vein as for the commercial goods, meaning the value of the goods themselves, excluding any other costs, taxes or charges already mentioned under letter a of Article 1 (48) of the Regulation (EU) 2015/2446.
Importation and exportation of low-value consignments - VAT e-commerce package “Guidance for MSs and Trade” by DG TAXUD, European Commission
- Market: EU - European Union