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.
As you are aware after our last Brexit update, UK business trading with EU countries has significantly changed especially when it comes to shipments of non-document consignments.
Here at Santis we are monitoring those changes closely and communicate them with our clients to avoid any unnecessary customs delays.
WHAT INFORMATION IS REQUIRED ON THE PROFORMA/COMMERCIAL INVOICE?
Delivery address with full contact details including phone number and or email address
Full description of goods – See below on examples accepted description. Commodity Codes or HS Codes are also required and can be found here
Total value for customs
Reason for Export
Country of Origin
EORI Number of shipper
EORI Number and / or TAX / VAT ID of consignee. Please see attached document to help determine what consignee information is required for all countries in the EU. These details can be added into the notes section of the proforma invoice on the booking portal
If we do not have all the information required, your goods will be delayed while contact is made with the consignee upon arrival to destination country and you might face additional customs charges.
There are different rules for all EU countries therefore it is very important that you follow our guidelines in order to avoid unnecessary delays.
Who will pay Customs Charges?
Santis Global offers two different clearance options, which can be chosen at the time of the booking:
DDU – Consignee / receiver are paying duties – the clearing agent will contact them and arrange payment of duties to be made.
If the shipment is sent under a Free Domicile/ DDP (Delivered Duty Paid) basis then Santis Global will pay the duties on your behalf and will forward those charges back to yourself.
HOW SHOULD I DESCRIBE ITEMS ON MY PROFORMA/COMMERCIAL INVOICE?
Over the last few years, we’ve achieved so much. We’ve grown the business and have expanded our services, our brand has been there with us throughout. However, we’re now celebrating our seventh birthday as a company and have realised that although our brand had served us well, it was no longer communicating what we needed; it was out of alignment with the business we had developed, and more importantly the service level that we provide our clients, it was time to embrace a change.
Whether it’s an important legal document, a valuable piece of equipment, or a package to support people and businesses through the pandemic, we’re handling a critical part of our clients’ process. We see ourselves as consultants in this sector, problem solvers, where our clients see us as their partners. The professionals that take the time to understand your unique challenges. We are as much a solutions provider as we are a service – we gain an understanding of our clients’ businesses and become an extension of their brand and we should reflect that. We’re not just about delivering a parcel or package, we’re delivering on a promise.
“I created Santis to make sure we were head and shoulders above the rest and delivered what we promised and I felt we could show this better,” said Managing Director, Luke Eggar “we wanted the brand to be more structured, more cohesive and more corporate. We’ve hit our seventh year so it’s a pivotal point and time to start upping our game.”
Our new branding needed to elevate our image while still conveying our unique approach, care and attention that we bring to what we are delivering. Our mark needed to become more sophisticated and contemporary without losing our ethos.
Dynamic and striking, the new icon captures the flexible working process that allows us to work seamlessly with what our clients need. A symbol of connection. Inspired by the momentum of movement, solution providing, problem-solving, it moves us into the modern professional services sector. It feels at home among our clients’ brands, traveling through London and the UK, supporting our valued clients’ changing needs and fast pace demands.
“It’s taken us to the next level. It has elevated the brand, it’s pleasing on the eye. I like things to look smart, clean, professional. It’s more sophisticated and I hope the clients will like it” said Eggar.
Working with brand agency Engage Convert has allowed us to develop our visual identity and treat our brand as an extension of our commitment to the clients we work with. “It’s been a simple process for a big project. Gareth and the team have made it an easy process, they’ve taken on board the vision that we had and have managed to get it out of our heads and onto paper” continued Eggar.
We feel our new, refreshed branding shows better synergy and understanding of the service we deliver and the professional solutions that we provide. We’re looking forward to seeing the response to the new branding and hope that you are as excited as we are.
IMPORTANT INFORMATION ABOUT SHIPPING AFTER 1ST JANUARY 2021
From 1st January 2021, UK businesses trading with EU countries will need to follow processes they currently use when trading with non-EU countries that have no existing trade agreements in place.
Therefore, any non-document consignments are expected to go through a customs clearance process which our Santis Team will manage for you.
SUPPORT & BOOK
— Here at Santis, our team continues to support our clients with any questions about shipping requirements as of 1st January 2021.
In addition, our online booking and tracking platform will automatically offer to create a Customs Invoice, with certain information automatically preloaded and wil prompt our clients to enter all the additional information required.
WHAT INFORMATION WILL YOU NEED TO PROVIDE ON YOUR CUSTOMS DECLARATION FORM?
As well as the usual sender and delivery details you will need to provide: Company VAT and EORI numbers*
Description of goods
• Country of Manufacture / Origin
• HS Codes / Commodity Codes*
• Unit Value
• Total shipment value
• Original Company Stamp
• Original Sender Signature
*EORI number stands for an Economic Operator Registration and Identification Number – is a unique ID code used to track and register customs information in the EU. From 1 January 2021 you will need an EORI number to move goods between Great Britain and the EU. If you don’t have one, apply for one now via – https://www.tax.service.gov.uk/customs/register-for-cds
*The HS Codes (Commodity Codes) are numbers which classify goods for export and import; they determine the rate of duty and VAT. You can read more about HS Codes on the government website.
WHO WILL PAY FOR ANY DUTY CHARGES? Santis Global offers two different clearance options, which can help with minimizing any possible customs related delays: Consignee / receiver are paying duties – the clearing agent will contact them and arrange payment of duties to be made. Under these circumstances no additional fees are payable. If the shipment is sent under a Free Domicile/ Duty Directly Paid (DDP) basis then Santis Global will pay the duties on behalf of their client and will forward those charges back to the client along with their monthly invoice.
SUPPORTING OUR CLIENTS Despite the fact that Brexit is certainly presenting companies with challenges, we are here to support our clients with their shipping requirements.
If you have any questions, please do not hesitate to contact us on:
TEL: +44 (0) 20 7232 2220