Dear Customer:
Hello!
Starting from July 1, 2021, the EU will adjust its VAT collection regulations on goods imported into its territory. The specific adjustments are as follows:
- The value-added tax (VAT) policy for goods with a declared value not exceeding 22 euros has been cancelled, that is, all goods imported into the EU will be charged VAT.
- Newly added goods with a declared value of less than 150 euros can be quickly cleared by registering with the EU's one-stop import service program IOSS. IOSS can simplify the customs clearance and payment of imported VAT for goods imported into EU countries (Import One Stop Shop, referred to as IOSS) .
Comparison before and after the adjustment of the VAT collection regulations on imported goods:
| Imported goods value | change point | 2021Before July 1 | 2021After July 1 |
| Declared value ≤ 22 euros | VAT needs to be paid to increase the simplified reporting channel IOSS | Duty-free and VAT-free | Duty-free, pay VAT |
| 22€＜Declared value≤150€ | Added simplified declaration channel IOSS | Duty-free, pay VAT | Duty-free, pay VAT |
| Declared value > 150 euros | constant | Pay customs duties, pay VAT | Pay customs duties, pay VAT |
About IOSS:
IOSS one-stop import service is a new VAT declaration and payment system launched to simplify the VAT payment procedures for goods from non-EU countries/regions with a declared value of no more than 150 euros that need to be imported into the EU. By using the IOSS VAT identification number to declare, you do not need to pay VAT when clearing customs at any port in the EU, which facilitates the rapid release of goods.
Applicable product range:
- Items shipped from a non-EU country to an EU member state
- Goods subject to EU consumption tax
- The intrinsic value of the goods does not exceed 150 euros
IOSSVAT identification number registration:
E-commerce platforms/self-built websites in non-EU countries/regions can apply to register an IOSS VAT identification number in any EU member state. They need to designate a legal institution in the EU to fulfill their VAT obligations under IOSS. The platform/self-built website only needs to submit tax forms and pay taxes to the country of registration every month.
IOSSmanual:
E-commerce platforms/self-built websites need to register for IOSS, register and declare VAT through a designated intermediary, and provide the registered IOSS VAT identification number to the customs declarer (SF International) to complete the import customs clearance declaration. The specific process is as follows:
- Register to use IOSS:The e-commerce platform/self-built website obtains an EU IOSS VAT identification number, which is applicable to all imported goods from all EU member states.
- To collect VAT:E-commerce platforms/self-built websites collect EU VAT from buyers when selling
- EU imports:If a valid IOSS VAT identification number is provided when declaring imports to EU customs, goods declared through IOSS will be exempt from VAT during customs clearance.
- Declaring and paying VAT:E-commerce platforms/self-built websites declare and pay VAT to the tax authorities of the member states where they are registered, submit an IOSS VAT return and pay VAT once a month
- Record:E-commerce platforms/self-built websites save sales lists and other records for future review
Clickdownload The EU’s detailed requirements for the above regulatory adjustments.
*[Statement] The above content is for reference only. Our company does not assume any legal responsibility for the accuracy of the above information; if you need to rely on the above information for any business activities, please be sure to consult the relevant national management departments or relevant professional institutions to obtain authority. information and service guide to avoid any losses.
Shanghai Wuchang Technology Co., Ltd.
June 28, 2021
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