EU VAT system, Corona

Ireland temporarily reduces VAT

To boost the economy, support businesses and tackle unemployment in the wake of the corona pandemic, Irish government officials presented a stimulus package on 23 July. As in Germany, the Irish government surprised everyone by announcing a temporary reduction in the standard VAT rate for six months from September. The standard VAT rate applies in Ireland to a wide range of goods and services, including the sale of adult clothing, electrical appliances, most household items and many electronic services. This is the first adjustment to the Irish standard VAT rate since 2012, when the rate was increased from 21% to 23%.

The reduction of the standard rate for six months requires the majority of Irish entrepreneurs to adapt their shop and trading systems - often with a great deal of effort. Online traders from other countries who also export their goods to Ireland must calculate the new applicable VAT rate and pay the tax correctly to the Irish authorities. It should be noted that the reduced VAT rate remains at 13.5%. This means that no changes are due for many offers in the tourism and hospitality industry, but also for certain foodstuffs, some pharmaceutical products and books.

The reduction of VAT in Germany already drew attention to an important function of ClearVAT's VAT Engine: Temporary changes, as is now the case in Ireland, are automatically transferred to the shops or system landscapes of the retailers. Manual intervention is no longer necessary. ClearVAT's certified database not only knows all the VAT rates and exemptions that apply in the EU, but also keeps it constantly up to date.

For online merchants who sell their goods in Ireland and already had to update the reduced German VAT rates in July, their shop systems will have to be adapted again. As of January or March, retailers are obliged to turn everything back again. More countries and tax cuts could follow in the next few months, and the game will start all over again.



Geoblocking in the EU: Shopping without borders?

Since the Geoblocking Regulation was introduced in December 2018, consumers may no longer be discriminated against on the basis of their nationality or place of residence. However, there is further potential for improvement for customers and online retailers.


Deal or no Deal - Customs regulations after the Brexit

When the transition period ends on 31 December 2020 and the UK loses its status as an EU member state, trade with the EU will be subject to new customs formalities. What happens if no free trade agreement has been ratified by then?


Online marketplaces as tax debtors

From July 2021, new VAT rules will apply to digital marketplaces for supplies from third countries to the European Union. Online marketplaces will become the debtor of the value added tax.



Cross-border E-Commerce in Europe withstands COVID-19

After insecure consumers and logistical problems initially led to a decline in revenues, cross-border online trade is picking up again. The crisis has shown that digital renewal and international networking are necessary in order to benefit from the growth potential.


Quick fixes, VAT reduction and changes in online trade 2021

The AWB Business Webinar on 23 June offered e-commerce companies an overview of the most important changes for their sales processes. ClearVAT presented CHECKVAT, its solution for the simple checking of VAT identification numbers.