As from July 2021, all goods imported into the European Union will be subject to VAT. The exemption for the importation of consignments below EUR 22 will be abolished. Sellers shipping low-value goods to EU consumers will be able to benefit from a simplification regime called Import One Stop Shop (IOSS). This regime will be voluntary: if the seller opts to use it, he will charge VAT of the customer country at the time of sale and no VAT will be levied upon importation when goods arrive in the EU. The commercial benefit of using the IOSS is transparency: the customer will pay a VAT inclusive price at the time of the transaction and will not face any additional charges when the goods are imported. The use of the IOSS aims for a quick release of the goods by the customs authorities and simplifies logistics issues as the goods can be released for free circulation in any Member State.
Source Aleksandra Bal
