As of 1 July 2021, new European VAT rules for business-to-consumer (B2C) transactions will apply, impacting suppliers of services, goods, marketplaces, and postal couriers. After the 1st July 2021, the value-added tax (VAT) exemption for the importation of goods with a value not exceeding EUR 22 will be removed. As a result, all goods imported to the EU will be subject to VAT.
What is VAT in the European Union (EU)?
A multi-stage turnover tax levied on the value-added at each stage of production and sale; A cost that is generally borne by the end consumer but collected by the seller.
What is the Import One-Stop Shop (IOSS)
The Import One-Stop Shop (IOSS) was created to facilitate and simplify the declaration and payment of VAT for distance sales of imported goods with a value not exceeding EUR 150.
- The IOSS facilitates the collection, declaration, and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU.
- The IOSS also makes the process easier for the buyer, who is only charged at the time of purchase, and therefore does not face any surprise fees when the goods are delivered.
- If the seller is not registered in the IOSS, the buyer has to pay the VAT and usually a customs clearance fee charged by the transporter at the moment the goods are imported in the EU.
Further Research, Refencing and Support
More information on the Import One-Stop Shop: https://ec.europa.eu/vat-ecommerce
Additional support can also be found from gov.uk on tax, duties, and related policies for
- Importing goods into the UK: https://www.gov.uk/import-goods-into-uk
- Exporting goods from the UK: https://www.gov.uk/export-goods
- Moving goods into, out of, or through Northern Ireland: https://www.gov.uk/government/collections/moving-goods-into-out-of-or-through-northern-ireland
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