Calculating VAT on goods sold to European Union (EU) member countries

December 16, 2022

Retailers when selling goods to their customers in the EU must calculate, charge and pay VAT on all packages shipped, regardless of their value.

Unfortunately, retailers are not clear that they must also pay VAT on all additional costs associated with the sale. And if they make mistakes in the calculation, retailers must be held accountable.

Different countries, different VAT rates

The retailer must be able to calculate taxes based on the rates of all the countries to which it transports goods.
Mistakes Retailers Make When Paying VAT.

The mistake retailers often make is that they apply VAT only to the price of the package

VAT must be paid (on all costs shown on the invoice). This includes transport, insurance and any extra costs.

It is important to emphasize that when these costs are marked separately on the invoice, they must be split between goods with different VAT rates on the invoice to calculate the correct amount of VAT for the extra costs.

Leave mistakes in the past and create a new future with Crossborderit

All goods entering the EU must be declared at customs and VAT is applicable to all items shipped to the EU, the most effective way to comply with the new rules is automated tax and duty calculation.

CBIT has it covered for you. With easy onboarding and simple, flat shipping rates, it will be very easy to calculate duties, collect them and even pay them for you. In addition, CBIT offers a simple DDP for these solutions for a great, hassle-free customer experience.

Sign up with Crossborderit and ship hassle-free.

Damon Baca


Crossborderit (CBIT)