Ecommerce: VAT changes

July 21, 2021

Major changes to the way we ship to the EU came into effect last week, with ecommerce companies advising their customers that a new post-Brexit change regarding VAT will affect products shipped from any third country in the EU from July 1 this year.

But what change exactly?

All goods sold to EU destinations from a third country will have to declare VAT.

The goods must go through customs to clear the tax and duties. What it means, in e-commerce:

  • Goods with a value of up to €22 are exempt from VAT.
  • Goods with a value of less than 150 euros will have to pay duties.
  • Therefore, if you sell any product below 22 euros, that good will not be subject to customs clearance and you will not have to assume any cost. If this amount is exceeded, the consumer is obliged to pay that amount at customs, to which must be added the commission for carrying out the corresponding customs formalities.

    The Import One Stop Shop IOSS is the safest and, in principle, the most economical systemThe EU has created the IOSS Import One Stop Shop to simplify the whole process. Customers will be able to see the total cost at the time of purchase.

    If the seller does not use the IOSS facility, customers will have to pay for it when it arrives at customs, plus the shipping company's commission.

    Leave IOSS in Crossborderit's Hands

    Flat rate IOSS fulfillment, the easiest way to make sure your customers are satisfied. Crossborderit will run your IOSS and fulfillment tickets without managing a complicated pricing structure and elusive integrations.

    Simply sign up, collect taxes from your customer and Crossborderit (CBIT) will take care of the rest quickly and easily.

    Contact the Crossboderit team to get the advice you need on the new IOSS and also be your IOSS representative.

    Crossborderit has you covered. With simple onboarding and simple, flat shipping rates, it will be very easy to calculate tariffs, collect them and even pay them for you. Plus, CBIT offers simple DDP for these solutions for an excellent, hassle-free customer experience.

    Register with Crossborderit and ship hassle-free.

    Damon Baca
    Crossborderit (CBIT)