From 1st July 2021, significant EU regulatory changes will come into force and will impact both B2C and B2B businesses in following ways:
- Removal of the 22Euro VAT exemption for imports
All goods imported to the EU will be subject to VAT. The current VAT exemption for importation of goods up to 22uros will be removed.
- All shipments imported to the EU will require a formal Customs Declaration.
In order to ensure a successful clearance of your shipments, it is crucial that you provide a complete and accurate Commercial/ Pro Forma Invoice
Please note that most shipments values under 150Euros are not subject to Customs duties on the arrival to EU.
Import One-Stop Shop (IOSS) for B2C (Business to Consumers)
The EU is launching an Import One-Stop Shop (IOSS) platform for companies who sell e-commerce to simplify the declaration and the payment of VAT for B2C imports up to value of 150Euros. It will allow customers to pay VAT at Point of Sale.
When using this platform, VAT for B2C shipments will be collected by your business at the moment of purchase and paid to EU tax Authorities via a periodic VAT return. If your business is not established within the EU, you will need to appoint an intermediary to settle VAT through this platform.
Please note that registering for the IOSS platform is not obligatory and you can continue to declare and pay VAT on EU imports as you do today. IOSS is an additional option for B2C shipments.
More information on IOSS can be found here – Modernising VAT for cross-border e-commerce | Taxation and Customs Union (europa.eu)
If you would like to discuss this further, please contact your Account Manager or our customer service team on firstname.lastname@example.org.
Santis Global Management Team