From 1 July 2021, low-value consignments of €22 or less imported into the European Union (EU) will no longer be exempt from import VAT. Instead, VAT will be charged on all shipments entered into the EU regardless of the value. However, the exemption threshold for import duty will remain unchanged at €150.
As with the current rules, any import VAT due will be the liability of the named importer.
Alternatively, from 1 July 2021, rather than have import VAT charged on these low-value consignments, you (the seller) could opt to charge the customer VAT at the point of sale if sold directly via your website. This means that you will charge VAT at your customer’s own country’s VAT rate and pay this via a new Import One-Stop-Shop (IOSS) VAT return.
The IOSS can only be used for consignments with a value of €150 or less.
Source: fiscalsolutions.co.uk
