The new European Union Value Added Tax (EU VAT) reform may impact your business depending on the following:
The value of the goods you sell
Whether you sell to businesses or consumers
Whether you use online marketplaces
Goods with a value up to €22 are no longer exempt from VAT. This impacts all businesses importing into the EU, whether you’re shipping to consumers or businesses. These low-value goods need formal customs clearance and are subject to VAT. You should consider how this impacts the price and margin of these products.
If you ship to a country that charges VAT on imported goods, the recipient pays these charges to the carrier when receiving the shipment. You (the shipper) cannot prepay these fees.
The Import One-Stop Shop (IOSS) is the electronic portal businesses can use to settle VAT in the EU for goods valued up to €150 and comply with their VAT ecommerce obligations. To get an IOSS or OSS number, you must contact your selling channels to request this information.