Notice on the Implementation of the EU Tax Reform on July 1

Since the EU's new VAT tax reform starts on July 1st, we suggest that customers who operate e-commerce small package business (the price of each piece is less than 150 euros) should apply for an IOSS account according to their business needs from the start date of tax reform.

Key points to pay attention to in tax reform are as follows:

• From July 1, 2021, the EU will remove the existing exemption from VAT on imports worth up to 22 euros, and all goods will be subject to VAT.

• For each piece of goods B to C with a value of less than 150 euros, an e-commerce platform with an IOSS account should be provided, or the agent/seller's IOSS account should be used for customs clearance. Please note that any low price goods not provided with IOSS can only be cleared in the country of destination, not the country of import.

• If your company needs to apply for an IOSS account, there are professional accounting companies on the market to provide professional IOSS account handling and tax declaration services, such as KPMG or Eurora. Please choose your application according to your needs.

https://www.kpmg-vat-oss.com/cn/zh/fr/ioss

https://eurora.com/services

• For the Chinese explanation of IOSS account, please refer to the content in the website page：

https://www.kpmg-vat-oss.com/cn/zh/fr/ioss

If you have any questions, feel free to contact us.