Businesses all around Europe are busy getting to grips with the EU’s new VAT system for e-commerce sales, which came into force on 1 July 2021. While this covers many aspects of e-commerce, top of the agenda for UK vendors who sell to EU consumers is the Import One-Stop Shop (IOSS), a new facility to pay import VAT to the EU on low value goods arriving from outside the EU.
The EU’s ‘low value import’ threshold, which previously allowed shipments of goods worth €22 or less to be imported into the EU without customs duty or VAT, has been abolished. Since 1 July 2021, import VAT is now due on the importation of all commercial goods into the EU. Instead of requiring VAT payment upon entry, the EU now allows import VAT on qualifying consignments not exceeding €150 to be reported and paid online through the IOSS.
Source RSM
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