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Do you ship goods to EU member states? This is for you.
Published 17 June 2021
After July 1, 2021, the VAT rules for B2C sales in the EU will change. These changes could affect all businesses selling to EU member states. However this directly affects companies that ship B2C, ecommerce and marketplaces.
The changes to the VAT rules could make shipping processes simpler.
The changes to the VAT rules could make shipping processes simpler.
But what changes are we referring to?
1. Online marketplaces will have to collect VAT.
Online marketplaces will now be responsible for collecting, reporting and remitting VAT owed by the end consumer if registered with IOSS.
The IOSS can be advantageous as it will allow e-commerce to meet its VAT obligations on distance sales of products imported into the EU. In addition the IOSS is responsible for collecting the VAT from the customer at the time of sale, ensuring that it is passed on to the relevant authorities.
The IOSS can be advantageous as it will allow e-commerce to meet its VAT obligations on distance sales of products imported into the EU. In addition the IOSS is responsible for collecting the VAT from the customer at the time of sale, ensuring that it is passed on to the relevant authorities.
2. The EUR 22 import VAT exemption will be abolished.
The abolition of the EUR 22 exemption from July 2021 will equalize EU sellers in terms of prices, as non-EU sellers will have to pay VAT on all imported products.
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3. Import One-Stop Shop (IOSS)
The IOSS was created for e-commerce shipments valued at (EUR 150 or less). This will allow online sellers to collect VAT and remit it directly to the tax authorities. This can make the process simpler and more transparent for the consumer, as well as streamlining customs procedures and making them more efficient.
To register for IOSS, sellers must select an EU member state where they are headquartered, otherwise they must appoint an intermediary such as Crossboderit to register and declare VAT on their behalf.
To register for IOSS, sellers must select an EU member state where they are headquartered, otherwise they must appoint an intermediary such as Crossboderit to register and declare VAT on their behalf.
Do you ship goods to the EU from third countries?
Don't worry CBIT can represent you
Don't worry CBIT can represent you
Crossboderit (CBIT) offers an end-to-end solution that allows customers to pay and report transactions as they occur, thus managing all VAT compliance, reporting and payment.
Because CBIT is integrated with Brokers, I was able to address IOSS in the supply chain rather than after the fact. This means that shipments will not be held up and your customer's experience will be exceptional.
Because CBIT is integrated with Brokers, I was able to address IOSS in the supply chain rather than after the fact. This means that shipments will not be held up and your customer's experience will be exceptional.
What about shipments worth more than 150 Euros?
If a shipment exceeds 150 euros, it is no longer an IOSS shipment. Other suppliers can no longer provide support. CBIT can.
A CBIT integration can provide the total cost at destination at checkout. In addition to that, CBIT can collect and pay taxes as well as customs fees for both low value and higher value IOSS.
Learn more about Crossborderit's IOSS representation.
A CBIT integration can provide the total cost at destination at checkout. In addition to that, CBIT can collect and pay taxes as well as customs fees for both low value and higher value IOSS.
Learn more about Crossborderit's IOSS representation.
Contact the Crossboderit team to get the advice you need on the new IOSS and also be your IOSS Representative.
CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.
Sign up with Crossborderit and ship hassle-free.
CBIT has it covered for you. With simple onboarding and flat, simple shipping rates, it will be a breeze to calculate duties, collect them, even pay them for you. Plus CBIT offers simple DDP for these solutions for an excellent hassle-free customer experience.
Sign up with Crossborderit and ship hassle-free.
