The changes are aimed at making compliance easier, VAT evasion tougher, and boosting trade across EU borders. To better understand these changes, let’s break them down here.
For sellers who choose to collect VAT on goods under €150, you have the option to declare this on a newly introduced tax declaration called the ‘Import One-Stop-Shop’ (IOSS).
The IOSS is a single EU VAT return that allows you to list all your pan-EU sales, rather than having to complete multiple VAT filings. Less paperwork is always great news, right?
Using IOSS is optional, and will be most useful when your customers are located in different EU states and you want to handle the import VAT on behalf of your customer. It also saves you from having to register for VAT in each and every country it is being shipped to.
Note that non-EU sellers will need to appoint a ‘member state of identification’ for filing purposes.
Previously, sellers shipping goods to EU buyers valued at €22 or less were exempt from VAT. Now, that threshold has been removed.
Starting 1 July 2021, all imports up to €150 will be subject to VAT, and sellers have the option to collect VAT on low-value consignments at the point of sale. Regular duty and tax rates will apply to anything above that. The delivery address will determine the specific VAT rate.
With Sendle, adding your tax information to comply with new EU VAT obligations is simple. Keep on reading, or visit our Help Center, for a step-by-step guide.
Please note, Sendle will continue to ship DDU (Delivery Duty Unpaid) for all international shipments.
Sendle is tracking these changes closely to keep our small business customers informed, and we’re committed to bringing you affordable, flat-rate international shipping rates to keep you competitive.
If you’re an online business shipping to customers in the EU, there are a few things you should do to ensure your deliveries keep running smoothly from 1 July 2021 onwards:
Look for these changes to be rolled out in your Sendle Dashboard ahead of 1 July.
As always, our customer support team is on hand to help along the way. For any tax-specific advice, always be sure to consult a tax professional.
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