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Goods arriving from outside the EU under € 22 will no longer be exempt from VAT

Two important changes will take effect from July 2022 in the regulation of e-commerce: the VAT exemption for goods arriving from outside the European Union with a value not exceeding EUR 22 will no longer be applicable, but simultaneously VAT payments will become easier. Import of goods up to EUR 150, with the exception of alcoholic products, perfumes and colognes, and tobacco or tobacco products, remain VAT-free, but a customs declaration must be lodged for each shipment entering the EU.

At the same time, in case of future shipments, customers will have to provide less information to the Hungarian tax authority on the customs declaration for shipments with a value of less than EUR 150. Accordingly, there are then two new options for paying VAT in the above-mentioned cases. One possibility is that sellers outside the European Union can register in the IOSS (Import One Stop Shop) system if they are selling to more than one Member State. In that case, the buyers shall pay the seller’s VAT duty when they buy the product. Alternatively, sellers can use the "Special Arrangement" (SA) to simplify the payment of VAT if they announce its usage in advance. Special arrangements are only possible if the customs procedure is in the same Member State as the consignee. When applying the SA, the VAT is collected by the carrier from the consignee upon delivery of the product, and then the carrier has to periodically declare and pay it to the Hungarian tax authority.

If neither the seller nor the carrier applies the two simplified possibilities, VAT must be paid by the consignee at the time of the customs procedure for importation.