The new EU VAT rules apply to all businesses located in the EU and to companies that sell their goods to customers in the EU. They mainly affect business-to-consumer (B2C) transactions and online marketplaces. These are the three most important changes:
Exemption from import VAT no longer applies
When goods are imported into the EU, import VAT becomes due - regardless of the value of the consignment. Until now, imported goods up to a maximum of 22 euros were exempt from import VAT.
Possible payment of VAT by shippers from non-EU countries
There are two options for consignments with a maximum value of 150 euros: VAT is calculated by the non-EU seller at the time of sale and paid via the new Import One-Stop Shop (IOSS). If the seller does not use IOSS, the VAT is collected from the consignee by the party which declares the goods to customs.
Online marketplaces to collect VAT
Online marketplaces on which merchants can sell goods directly to B2C customers are now responsible for collecting, reporting and remitting the VAT which is payable by the final consumer. This arrangement will apply to cross-border and domestic transactions of any value. The party which declares the goods to customs no longer has to collect VAT from the end consumer.
We carry out the customs clearance for you with our partner Sovereign.